The Florida Legislature is dragging its feet on addressing litigation abuses – from “nuclear verdicts” to a burgeoning property insurance crisis – according to a new report from the American Tort Reform Foundation that places state lawmakers on a “Watch List.”
The ATRF’s 2022-23 Judicial Hellholes report concludes that although Gov. Ron DeSantis and the state Supreme Court have taken positive steps to address lawsuit abuses in Florida, the Legislature needs to do more.
“We applaud the Legislature for enacting reforms during a special session to address the ongoing property insurance crisis in the state,” the ATRF study states, “but much work remains to be done if the state is to be removed once and for all from the Judicial Hellholes report.”
The study quotes a 2022 study by the U.S. Chamber of Commerce’s Institute for Legal Reform that concluded Florida had the most jury verdicts in the $10 million-plus range of any state during the decade of 2010 to 2019. Such Florida verdicts were concentrated in the areas of product liability and auto accident cases, the report says.
ATRF also points to how nine property insurers have exited the Florida property insurance market over the past two years. And the report sounds warnings about attorney ad spending that dwarfs any other state and also inflated medical damages awards.
The state Legislature, however, will get a chance to reconsider property insurance reforms advocated by tort-reform supporters when it holds a special legislative session next week, ending on Dec. 16.
Tom Gaitens, executive director of Florida Citizens Against Lawsuit Abuse (CALA), expressed optimism that new leaders in the state Legislature will pursue changes to reduce abusive legislation during the new session.
“The last two (legislative) cycles have done little to deal with the property insurance crisis and even less with nuclear damages, among other potential reforms,” Gaitens told the Florida Record in an email. “Yet, we at CALA are confident that beginning with the special session, the 2023 class will do what the prior classes failed to do and jump on the tort-reform process early.”
Among the reforms state lawmakers should consider are in the areas of assignment of benefits in roof repairs, inflated medical damages awards caused by letters of protection and the state’s one-way attorney-fee law that makes it more lucrative to sue insurers, according to Gaitens.
“Florida can no longer kick this can down the road, reform is long overdue and Floridians demand reform now,” he said. “The trial lobby has controlled the Legislature's priorities for too long. It is time for the Legislature to put the rank-and-file citizen, small business owner and homeowners first.”
The Record is owned by the U.S. Chamber’s Institute for Legal Reform.