Florida Seeks Reforms for Insurance coverage Litigation, Frivolous Lawsuits

[Stay on top of transportation news: Get TTNews in your inbox.]

Florida lawmakers are readying a sequence of reforms aimed toward frivolous lawsuits that concentrate on trucking corporations and different small companies within the state.

“This will probably be in all probability probably the most vital authorized reform that’s ever been accomplished within the trendy historical past of the state of Florida,” Gov. Ron DeSantis stated in a Feb. 14 announcement. The measures embrace eliminating one-way legal professional charges and charge multipliers for all traces of insurance coverage, modernizing Florida’s “dangerous religion” regulation, and putting in protections to defend trucking corporations and others from being topic to exorbitant lawsuit damages.

The strikes, the state stated, are being made to, “disincentivize frivolous lawsuits and realign Florida’s insurance coverage market to advertise extra competitors.”

DeSantis added, “We’re engaged on a sequence of reforms to have the ability to make the system higher. We would like individuals to have the ability to have their day in courtroom in the event that they’re harmed, however we don’t need instances which can be fought the place we all know there’s no legal responsibility, however nonetheless it provides price to the system.”

Reacting to the information, Florida Trucking Affiliation President and CEO Alix Miller stated, “We’re grateful that Florida management has been listening to the trucking business. For too lengthy, trucking has been a goal for unscrupulous trial attorneys in Florida. We’re assured that complete tort reform laws will steadiness out our courtroom system to permit these really harmed to be made complete whereas placing the brakes on frivolous lawsuits.”

DeSantis stated the laws, which follows the December enactment of property insurance coverage litigation reform, will handle flaws within the state’s authorized system and what he described as a longtime “cottage business” of litigation propelled by attorneys who run billboard promoting alongside interstates.

Beneath this proposed laws, DeSantis’s workplace stated the state’s “dangerous religion” regulation can be up to date to incentivize good religion between each events and promote the perfect curiosity of the buyer. This provision additionally would preserve consumer-focused protections to make sure that dangerous actors are held accountable.

New laws additionally would:

• Defend small companies from paying exorbitant damages when not primarily at fault. (Beneath present regulation, fraudsters and con artists prey on small companies by submitting lawsuits even when they’re as much as 99% at fault if accidents occurred in a crash.)
• Set requirements for awarding medical damages by requiring medical information, process codes and knowledge relating to medical health insurance reimbursement to make sure correct settlements and stop fraudulent practices.

Becoming a member of DeSantis was state Home Speaker Paul Renner (R-Palm Coast), a former army veteran, prosecutor and enterprise legal professional, who stated legal guidelines aimed toward “bringing issues into steadiness” will probably be launched throughout the state Legislature session that convenes March 7.

“It’s best to by no means have a state of affairs the place a consumer will get $200 and a lawyer will get $2,000. That’s about attorneys not about individuals,” Renner remarked.

Senate President Kathleen Passidomo (R-Naples), an legal professional specializing in enterprise and actual property regulation, stated, “The overwhelming majority of attorneys work very arduous to offer sound authorized illustration for Floridians in these tough circumstances. Sadly, there are just a few dangerous actors who’re within the enterprise to attract out civil instances so long as potential, amassing an increasing number of charges from insurance coverage corporations, and that has to cease.”

DeSantis stated he absolutely helps updating the state’s authorized system to be extra consistent with the remainder of the nation.

Ron Sandlin, president and CEO of Jacksonville-based Patriot Transportation Holding Inc. and Florida Rock & Tank Traces Inc., spoke throughout an occasion held to launch the initiative. He’s a 40-year veteran at his firm.

“Sadly, lawsuit abuse in our state has constantly had us ranked as one of many worst, if not the worst; it’s made it very tough for us to get inexpensive insurance coverage,” stated Sandlin, a former FTA board chairman. “In lots of instances, insurance coverage corporations have determined simply to not write insurance coverage on this state.”

Whereas Patriot has 500 workers, together with 400 truck drivers, Sandlin burdened that these sorts of lawsuits could be devastating to a lot smaller corporations.

“After they [smaller trucking companies] get into one among these litigations, the insurance coverage corporations don’t have any selection however to cost them extra. It will get to the purpose the place they will’t keep in enterprise and your items don’t get delivered,” Sandlin stated. He famous his firm’s insurance coverage charges have skyrocketed 73% since 2018, and its protection has been lowered 60%, forcing it to pay greater premiums for much less protection.

Our member, @FLRockandTank’s Rob Sandlin, joined @GovRonDeSantis, Speaker @Paul_Renner & Senate President @Kathleen4SWFL at @kenworthTruckCo in Jacksonville right this moment. pic.twitter.com/tBYXbviV6Y

— Florida Trucking Affiliation (@FloridaTrucking) February 14, 2023

Sandlin famous that Florida’s legal guidelines differ from 33 different states, thus creating a positive local weather for frivolous lawsuits and inflated medical damages. This, he stated, forces insurance coverage and trucking corporations not at fault to settle slightly than litigate, and face a courtroom system that could be stacked in opposition to them.

“We’re like each different trucking firm represented by FTA and the oldsters on this room right here right this moment,” Sandlin stated throughout the occasion. “If we trigger an accident and we damage someone, we wish to do what’s proper and we wish to pay for these accidents. We don’t suppose we must be paying for accidents that we don’t trigger, and we don’t suppose we must be paying for inflated medical damages.”

Need extra information? Take heed to right this moment’s day by day briefing under or go right here for more information: