Gov. Ron DeSantis quickly signed a bill containing sweeping limits on lawsuits (HB 837).
The tort bill is a priority for DeSantis, Senate President Kathleen Passidomo and House Speaker Paul Renner.
“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 on the bill signing. “I am proud to sign this legislation to protect Floridians, safeguard our economy and attract more investment in our state.”
“The vast majority of attorneys work very hard to provide sound legal representation for Floridians in these difficult circumstances,” Passidomo added.
“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. Litigation drives up the basic costs of goods and services for everyone across all areas of industry and commerce. Under the leadership of Gov. DeSantis, we have taken many steps to help keep Florida affordable for growing families and seniors. This legislation further those efforts striking the right balance and protect the rights of Floridians who suffer a loss, while at the same time safeguarding everyone else against the hidden costs of prolonged litigation.”
The bill makes substantive changes to how lawsuits are filed and litigated in the state, all but eliminating the longstanding statute that allows a policyholder who successfully sues their insurance company to recoup their attorney fees.
The new law also modifies the state’s comparative negligence system so that a plaintiff found to be more than 50% responsible for their own injury cannot recover damages. The measure also adjusts Florida’s bad-faith rules so that insurance companies cannot be sued for bad faith if, before a complaint is filed or within 90 days of being notified of the complaint, they tendered the lesser of the policy limits or the amount demanded by the claimant.
“Thank you Gov. DeSantis for signing transformational legislation to end lawsuit abuse,” Renner said.
“This legislation prevents frivolous lawsuits and allows good claims to move forward. These reforms make our economy more competitive and Florida more affordable for our citizens and businesses. Thank you to House sponsors Tommy Gregory and Tom Fabricio for your leadership on this bill.”
It’s the first bill of the 2023 Legislative Session that DeSantis has signed. While the Governor often calls a press conference to sign legislation, this bill was signed without any fanfare.
But Reps. Fabricio and Gregory, who sponsored the House bill signed by the Governor, both attended Friday’s closed-door ceremony to sign the measure.
“The reforms Gov. DeSantis signed into law returns Florida’s tort system to fundamental American judicial principles that the most responsible pay for the damages they caused and trusts juries to fairly decide cases,” Gregory said.
Added Fabricio, “This legislation brings balance to the system and protects the legal rights of Floridians to access to the courts while reducing the number of frivolous lawsuits.”
Sen. Travis Hutson, who sponsored the Senate version of the bill, also released a Friday statement praising the changes.
“For too long Florida families have shouldered the hidden cost of lawsuit abuse as Florida’s litigation environment has cost jobs and driven up the cost of goods and services,” Hutson said.
“This legislation contains the most meaningful and robust reforms in decades, making numerous changes to Florida’s arduous civil system that will provide transparency to jurors, shorten the time people toil away in civil court, and eliminate unfair practices that bad actors have abused.”
The bill was championed by insurance and business lobbyists and was opposed by the Florida Justice Association (FJA), which represents the state’s trial lawyers. Curry Pajcic, President of the Florida Justice Association, hammered the legislation in a Friday statement.
“The new law does nothing to protect Floridians and everything to protect the profits of billionaire insurance corporations,” Pajcic said. “The process by which the sweeping reforms were considered was concerning to the FJA and our members, as well as numerous other parties who publicly opposed the bill at every committee stop in the process.”
Prior to the bill becoming law, the Florida Chamber of Commerce announced it had launched a legal defense fund, anticipating the FJA will challenge the new law in court.
Florida Chamber of Commerce President and Chief Executive Officer (CEO) Mark Wilson said in a prepared release that the “personal injury lawyer industry has habitually used the courts to undo the work and intent of the Legislature and the citizens of Florida those elected officials represent.”
“This is evidenced by legal challenges to several of the most impactful recent legal reforms in Florida — from workers’ comp to medical malpractice to the repeal of joint and several liability and others — which all faced legal delays upon being signed into law,” he added.
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