Attorney Fee Awards in Insurance Actions ̶ HB 1551 by Rep. Hillary Cassel (R-Dania Beach), an attorney, and the similar SB 426 by Senator Jonathan Martin (R-Fort Myers), another attorney, would essentially undo the 2023 session’s elimination of one-way attorney fees signed into law under HB 837. The Senate bill would require courts to award attorney fees to the prevailing party in both admitted and surplus lines insurance litigation. Current law requires each party pay its own fees. It would also allow the plaintiff to move to declaratory judgment after the insurance company issues a reservation of rights, but before a coverage denial. The House bill also repeals the attorney fee for declaratory judgments enacted by the 2023 tort reforms.
HB 1551 still awaits its third and final committee stop but the provisions of this bill are now also part of HB 947 below. By doing so, backers may believe the provisions here, combined with those of HB 947, have a better chance of passing. (See HB 947 below.) The Senate bill has yet to receive its first hearing. A recent report by the Consumer Choice Center says 2023’s HB 837 has proved “worthwhile,” citing “steady insurance rates, transparency in medical costs at trial, reduced litigation, and spurred innovation and competition.” Read More
HB 1551 was last heard on March 20 in the House Insurance & Banking Subcommittee, its second committee stop. The bill passed 15 to 1 and as a reminder, the bill passed its first committee stop 16 to 1. Fortunately, the Senate has yet to hear its bill. HB 1551 reverses Florida’s 2022-23 tort reform that has stabilized the Florida property insurance market, leading to reduced or flat premiums. Supporters of the bill say that tort reform went too far and with the advent of the recent newspaper story alleging “billions went to investors and affiliated companies,” the legislature needs to rethink the changes made to property insurance litigation. One of the opponents of the bill suggested that the bill be changed so that if an insurance company prevails in court, the company can pursue the plaintiff lawyer for fees and not the policyholder, recognizing that companies would not pursue their policyholder for fees if the policyholder loses their case.
This subcommittee was respectful in its discussion of this bill although the undercurrent is still prevalent of the recent news reports which assert that insurers were paying investors versus keeping themselves solvent, which nothing could be further from the truth. As expected, doctors, plaintiff lawyers, and chiropractors support the bill and the Florida Chamber, insurance industry associations and defense lawyers oppose the bill. We are happy to discuss this bill further with each of you. (Return to Bill Watch)
