Michael Pagenta, Assistant Vice President of the reinsurance firm Gen Re, stated that Florida plaintiff’s attorneys filed "more than 70,000 lawsuits" in the week leading up to the enactment of tort reform bill HB 837. This action was taken in hopes of "avoiding application of the new laws to existing cases." Pagenta's statement was made in a March 25 post on Gen Re’s website.
"HB 837 took effect on March 24, 2023," said Pagenta. "While the legislation was pending and prior to its effective date, the plaintiffs' bar went to great lengths to avoid application of the new laws to existing cases. More than 70,000 lawsuits were filed in Florida from March 18 to March 23, 2023, alone. To put this massive wave of filings in perspective, the number of motor vehicle lawsuits filed in Florida in March 2023 was more than six times higher than the number of similar lawsuits filed in any other month that year."
Florida Governor Ron DeSantis signed HB 837 into law on March 24, 2023. According to a press release from the governor's office, the goal of this legislation is to reduce the number of "frivolous" lawsuits in the state and prevent trial attorneys from engaging in "predatory practices." The bill includes tort reform measures such as clarifying that negligence alone does not constitute "bad faith," eliminating attorneys’ fee multipliers, and establishing uniform standards to assist juries in calculating accurate medical damages. DeSantis expressed his support for these reforms, stating: "Florida has been considered a judicial hellhole for far too long and we are desperately in need of legal reform that brings us more in line with the rest of the country. I am proud to sign this legislation to protect Floridians, safeguard our economy and attract more investment in our state."
In a press release, Senate President Kathleen Passidomo asserted that excessive lawsuits lead to higher costs for goods and services "for everyone across all areas of industry and commerce." She said: "The vast majority of attorneys work very hard to provide sound legal representation for Floridians in these difficult circumstances. Unfortunately, there are a few bad actors who are in the business to draw out civil cases as long as possible, collecting more and more fees from insurance companies."
According to a client advisory from McGriff Insurance Services, Florida’s insurance market had been struggling due to surging claims litigation prior to HB 837. Plaintiff’s attorneys were prolonging claims for extended periods in an attempt to secure larger fees from insurance carriers and were filing "frivolous" lawsuits with the goal of "winning quick settlements." HB 837 targeted the high volume of "questionable" lawsuits in Florida that were ultimately driving up insurance costs for all policyholders.
As reported by Reuters, Florida’s insurance market has begun to benefit from the tort reforms enacted last year. New insurance providers have entered the state’s market, providing more options for consumers. Although it will take more time to see the long-term impact of the tort reform, experts anticipate that the state’s insurance market will continue to stabilize this year.
Pagenta joined Gen Re in November 2023, according to his LinkedIn profile. His previous employers include Liberty Mutual Insurance, State Farm, and Geico. He currently resides in Miami.