A reform drive to reduce excessive litigation and prevent “predatory trial lawyers” from targeting individuals, truckers and small businesses was launched Tuesday by Gov. Ron DeSantis.
The new legislative proposal, which has the support of Florida Senate President Kathleen Passidomo and House Speaker Paul Renner, aims to build on other reforms passed last year to stabilize the property insurance market in Florida. The new plan would eliminate the state’s one-way attorney fee provisions and fee multipliers for all types of insurance claims and shield businesses from having to pay larger damages awards.
“For decades, Florida has been considered a ‘Judicial Hellhole’ due to excessive litigation and a legal system that benefitted the lawyers more than people who are injured,” DeSantis said in a prepared statement. “We are now working on legal reform that is more in line with the rest of the country and that will bring more businesses and jobs to Florida.”
Tort reform supporters, including the Florida executive director of Citizens Against Lawsuit Abuse Tom Gaitens, reacted positively to the new initiative. The new plan also aims to revamp language regarding when insurers act in “bad faith” against policyholders.
“Florida CALA is thrilled that the governor is following up on the very successful December special session with a bold effort to address tort reform in general,” Gaitens said in an email to the Florida Record.
The CALA Economic Impact Report has estimated that the average Floridian pays an $812 annual “tort tax” due to excessive litigation costs in the state – a burden that also leads to an annual loss of 173,000 jobs in Florida.
“Additionally, from 2010 through 2019, Florida produced the most 'nuclear' verdicts of any state in America, according to a study conducted by the U.S. Chamber of Commerce, totaling $35 billion,” Gaitens said.
Michelle Smith, a member of the National Federation of Independent Business’ Florida Leadership Council, said the legal fees needed to defend against a lawsuit can ruin a small firm.
“These are expenses that cascade into all of the other areas of your operation,” Smith said in a prepared statement. “It’s money that is taken or not available for payroll, for advertising, for marketing, for raises, for expanding your business.”
And even if a business goes under while trying to defend against a lawsuit, plaintiffs’ lawyers will continue to get their financial compensation, she said.
“They really have become almost professional thugs for the business person,” Smith said.