A bill that increases by fivefold the amount of damages a party can collect in litigation against local governments could force local agencies to pay out more of their funds to deal with tort claims, according to the bill’s opponents.
House Bill 985, authored by Rep. Mike Beltran (R-Lithia), would lift the sovereign immunity cap on damages recovery from a government entity, such as a city or county, from the current $200,000 to $1 million per person. Under the principle of sovereign immunity, a state or local agency cannot be sued without giving its consent.
HB 985 passed the Florida House Civil Justice & Property Rights Committee on a 16-1 vote last week. If approved, it would take effect on July 1.
The bill would also provide for annual increases in the damages cap beginning July 1, 2023, based on the Consumer Price Index, according to a state House of Representatives staff analysis of the bill. In addition, HB 985 cuts the time allowed for a government agency to review and deal with a claim from six to three months.
State and local agencies could end up spending more of their resources trying to satisfy tort claims if the bill becomes law, the staff analysis says. And it could also reduce state lawmakers’ workloads because lawmakers are often asked to pass claim bills allowing constituents to recover an amount in excess of the caps in place, according to the analysis.
The Florida League of Cities sees the proposed increase in the sovereign immunity cap as excessive and potentially costly for local governments. The current cap, which was put in place in 2011, would amount to $247,891 in today’s dollars, league spokeswoman Brittni Johnsen told the Florida Record in an email.
“As drafted, HB 985 will create a significant increase in the costs cities expend to protect the health, safety and welfare of their residents,” Johnsen said. “Ultimately, the state and its agencies and subdivisions will likely spend more of their resources to satisfy tort claims. The bill will likely result in an increase in insurance premiums for government entities that purchase liability insurance.”
In addition, increasing governments’ liability in tort cases could be especially hard on smaller public agencies or those that are under tight fiscal constraints, she said.
Florida state law allows for recovery of only compensatory damages – not punitive or exemplary damages – in claims against state and local agencies.