Notable Changes to Florida’s Legal System

Notable Changes to Florida’s Legal System

Earlier in March 2023, Florida lawmakers passed a sweeping tort reform law they hope would reduce frivolous lawsuits in the state. The purpose of the new law is to change large swaths of Florida’s civil justice system, including liability in negligence cases. This blog looks at what the new reform law states and the changes that will occur as a result.

Different Sections of the Bill and Changes Incurred

The revolution that the new bill will bring has caused many lawyers to file an unprecedented number of cases already. Meanwhile, the bill has already passed through the Republican-majority Florida House of Representatives, largely along partisan lines. More so, Ron DeSantis, Republican Governor, has already indicated his support for the new legislation.

The proposed law will bring about major changes that will have far-reaching effects on insurance and negligence litigation. Here are some of the aspects of Florida’s legal system that the law will affect:

The One-Way Attorney Fees

The century-old Florida law requires insurance companies to shoulder the responsibility of paying policyholders’ fees if they successfully file a claim. Now, insurance companies are off the hook as each party must pay their legal fees.

There is a little amendment, however, where the insured can file a separate declaratory judgment case for coverage determination. In addition, lawmakers hope the legislation will limit bad-faith claims with insurance companies. Under the new law, insurance companies will be paying the claim or the lesser end if they pay within 90 days.

Negligence claims

Another area that the reform legislation will affect is that of negligence lawsuits. To start with, the statute of limitation for filing a negligence lawsuit in Florida is now two instead of four years. Furthermore, the plaintiff loses their right to compensation if they contribute more than 50 percent to the accident.

Liability Claims

The bill also targets premises liability lawsuits specifically, limiting the liability of property owners, among others. For example, if a criminal attacks an innocent person on another person’s property, the court will consider the criminal’s fault. Essentially, the liability of the property owners and other parties involved will be reduced.

Medical Lawsuits

Medical lawsuits are also affected by the legislation in that plaintiffs have to inform the jury if their lawyer recommends a doctor. Also, the new law limits the cost of care, bringing it just a little above Medicaid and Medicare rates.

Different Points of View on the New Legislation

Since the proposal to pass the new bill, there have been positive as well as negative reactions. Supporters have called Florida a judicial hellhole, saying companies see too many frivolous lawsuits, which have restricted their ability to hire additional workers. Meanwhile, the Florida Retail Association and the Florida Chamber of Commerce, also supporters, say the legislation will reduce insurance rates.

However, critics of the legislation say it will deny consumers the needed protection against large corporations’ deep pockets. “The bill may not cover all aspects as comprehensively as anticipated, and there is no specific provision addressing the concern of increasing insurance rates and potential impacts on vulnerable populations,” suggests personal injury attorney Gregory J. Panzo of Largey Law Firm, LLC.

Conclusion: what do Floridians think?

Floridians disagree with the new bills, according to a recent survey of 1,000 citizens. The survey asked several liability coverage questions, to which 85 percent said hotels and apartment complexes should not escape liability. Also, 89 percent say health insurance companies should pay attorney fees for plaintiffs forced to sue due to wrongful denial of coverage for necessary treatments.