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FLORIDA RECORD

Monday, June 24, 2024

Report finds Florida’s tort reform lowered lawsuit volume

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Gov. Ron DeSantis | X/GovRonDeSantis

Consulting and research firm Sedgwick released a report titled "Liability Litigation" on May 31, just over one year after Governor Ron DeSantis signed tort reform bill HB 837 into law. Sedgwick found that HB 837’s enactment coincided with a decrease in lawsuit filings in Florida.

DeSantis signed HB 837 into law on March 24, 2023, with the goal of reducing the number of "frivolous" lawsuits in the state and preventing trial attorneys from engaging in "predatory practices," according to a press release from the governor's office. The bill enacted tort reform measures including 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. "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," DeSantis said in a statement at the time. "I am proud to sign this legislation to protect Floridians, safeguard our economy and attract more investment in our state."

According to Sedgwick's report, Florida attorneys filed a record number of lawsuits in the months leading up to HB 837 taking effect. Attorneys filed 280,122 new cases across the state in March 2023, representing a 127% increase from the previous record. Since August 2023, the number of new lawsuits filed in the state has trended downward.

Prior to HB 837, Florida’s insurance market "struggled for some time due to surging claims litigation," according to a client advisory from McGriff Insurance Services. Plaintiff’s attorneys were tying up claims for long periods of time to try to get larger fees from insurance carriers and were filing "frivolous" lawsuits with the goal of "winning quick settlements." HB 837 targeted the large number of "questionable" lawsuits in Florida that were ultimately driving up insurance costs for all policyholders.

Sedgwick utilizes proprietary technology and industry data to provide insights and business solutions, according to the company’s website.

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