Ryan Jones, a partner at Traub Lieberman Straus & Shrewsberry LLP, said that a newly proposed insurance bill could result in more lawsuits and increased premiums for Florida homeowners. He made this statement during legislative testimony.
"Although it claims to institute a prevailing party fee provision, that's not how it's going to work in practice," said Jones, Representative. "The bill looks at the $5,000 offer against the $5,000 verdict and changes the insured from the losing party to the prevailing party. That's going to increase the number of lawsuits and the payments that insurance companies make to resolve them. When insurance companies pay out more money, they are going to raise the premiums, and every single Florida homeowner is going to pay for that."
According to Insurance Business, Florida House Bill 1551 aims to reinstate a "prevailing party" standard for awarding attorney fees in insurance litigation. This bill seeks to replace the "one-way attorney fee" system that was eliminated in 2022. Under the proposed measure, either the insurer or the insured could recover attorney fees if they prevail and the judgment exceeds the opposing party’s highest written, good-faith settlement offer.
Butler Legal reported that HB 1551 may lead to increased litigation and higher insurance premiums. The firm argues that the potential for recovering attorney fees might encourage more lawsuits. There are also concerns that insurers may settle more claims to avoid legal costs, which would increase their operational expenses.
As reported by Insurance Business, some industry groups warn that HB 1551's possibility of recovering attorney fees could encourage more lawsuits. Additionally, these groups caution that the bill may undo recent reforms aimed at stabilizing Florida's insurance market, potentially leading to a resurgence of excessive litigation and financial strain on insurers.
Jones is based in St. Petersburg, Florida, where he focuses on insurance litigation involving first-party property and third-party liability claims. He has handled cases through trial and appeal, including those related to hurricane damage, fire losses, and water damage. Previously, Jones worked at Shook Hardy & Bacon on national product liability matters. He holds a J.D. from Stetson University College of Law and a B.B.A. in International Business from the University of Georgia.