On May 28, 2025, Act 42 (H.3430) was signed into law in South Carolina. This law is commonly referred to when discussing the state’s updated “tort reform in South Carolina.” While full implementation begins January 1, 2026 for claims arising after that date, it is vital for businesses, property owners, and individuals to understand how it changes liability and opens up new risk‑management decisions.

Whether you own a bar, operate a retail store, rent out property, or simply want to know your exposure after an accident, let’s examine the key parts of tort reform in South Carolina, how liability has shifted, and when consulting a lawyer becomes critical.

What Changes Under the New Tort Reform in South Carolina

Allocation of Fault and Joint Liability

Under previous law, a defendant in South Carolina who was less than 50 percent at fault could still be fully liable for the full amount of damages if the case involved indivisible harm. Act 42 adjusts those rules. Specifically, a defendant whose conduct is determined to be less than 50 percent of total fault will now be liable only for their share of the damages.

At the same time, defendants have greater ability to include non-defendant tortfeasors (known as the “empty-chair defense”) on the verdict form. This ensures fault and risk are more fairly apportioned among all parties who contributed to the injury.

Alcohol and Liquor Liability Reforms

Act 42 also addresses liquor liability. For instance, a business (such as a bar or restaurant) that sells alcohol to a person who later causes injury might previously have faced full liability under joint and several liability rules. Under the reform, in many cases the business is now capped at 50 percent of the plaintiff’s damages when the liquor-sale case involves a DUI or intoxicated patron scenario.

The law also requires mandatory server training, mandates sales rules, and provides opportunities for businesses to reduce required insurance by taking steps such as cutting off alcohol service by midnight or using digital ID scanners between midnight and 4 a.m.

Timing and Scope: What “Tort Reform in South Carolina” Means for You

It’s important to know that the changes take effect January 1, 2026, and apply to causes of action or claims arising after that date. For incidents or claims before that date, the older law generally still governs. That means businesses and individuals must prepare now for how the new rules will reshape liability and coverage.

Implications for Businesses, Property Owners and Individuals

For Business Clients and Property Owners

If you operate a business, own rental property, or serve alcohol, understanding this tort reform in South Carolina is essential:

• Risk exposure may drop if your business is less than 50 percent at fault.
• You should document procedures, staff training, and compliance efforts.
• Insurance carriers and coverage requirements will likely adapt to the new law.

If your business sells alcohol or hosts events, you should consider whether you can qualify for reduced insurance requirements under the risk-mitigation provisions of Act 42

For Individuals and Injured Parties

If you are injured or representing someone who was harmed, tort reform in South Carolina means:

• If multiple parties share fault, you must understand how fault allocation impacts your claim.
• Liability may be more spread out among named and non-named tortfeasors.
• The law does not reduce your right to recover damages, but it changes how liability is allocated.
• You should consult an attorney early if you suspect there are multiple responsible parties or if alcohol or intoxication played a role in the incident.

When a Lawyer’s Involvement Becomes Critical

Act 42 inserts more complexity into fault-allocation, alcohol-liability, and verdict-form procedures. A lawyer becomes critical if:

• You are a business or property owner who might be partly at fault and wants to reduce exposure.
• You are an injured party trying to hold multiple responsible parties accountable.
• The incident involves alcohol-service, intoxication, or unknown non-parties who may share fault.
• You’re planning for coverage, risk mitigation, or insurance review in anticipation of the new law.

The Legal Landscape of Tort Reform in South Carolina Is Changing

Tort reform in South Carolina is shifting liability in meaningful ways. Act 42 is not just a small tweak, it fundamentally changes how fault is allocated, how businesses can manage risk, and how individuals approach injury claims. If your business serves alcohol, you should assess your policies, training, and insurance now. If you’re injured or may face liability, talk with a local attorney who understands the 2026 changes coming into force.

If you’d like a no-obligation consultation with a local community lawyer who stays on top of the latest South Carolina law changes, contact Winslow Law today. Winslow Law serves clients throughout South Carolina, from our offices in Myrtle Beach, Pawleys Island, and Columbia.

Winslow Law—Committed counselors for our clients and community.

FAQs

1. What does the new “tort reform in South Carolina” change about business liability?

The reform limits liability for defendants who are less than 50 percent at fault and allows fault to be assigned to non-parties (empty-chair tortfeasors). It also changes how alcohol-related injury claims are handled, especially for businesses that serve liquor.

2. Does Act 42 apply to incidents before January 1, 2026?

No. The statute takes effect January 1, 2026 and applies only to claims that arise on or after that date. Incidents prior to that date are generally governed by pre-existing law.

3. How can a property owner or business prepare for the new tort rules?

You should review your risk-management practices, insurance coverage, training programs (especially if you serve alcohol), and consult an attorney to ensure you are ready for the changed liability landscape starting in 2026.