• Home
  • About Us
    • Our History & Accomplishments
    • Our Leader
    • LMA Gives
    • Photo Gallery
    • Library & Resources
  • Services
    • Assignment of Benefits & Insurance Litigation
    • Associations & Nonprofits
    • Business Development & Procurement
    • Education
    • Energy & Environment
    • Emergency Management
    • Flood Insurance & Resilience
    • Healthcare
    • Insurance/Financial Services
    • Legislative & Regulatory Monitoring
    • Marketing Intelligence
    • Property & Casualty Insurance
    • Public Relations
  • News / Podcasts / Library
  • Contact
  • Home
  • About Us
    • Our History & Accomplishments
    • Our Leader
    • LMA Gives
    • Photo Gallery
    • Library & Resources
  • Services
    • Assignment of Benefits & Insurance Litigation
    • Associations & Nonprofits
    • Business Development & Procurement
    • Education
    • Energy & Environment
    • Emergency Management
    • Flood Insurance & Resilience
    • Healthcare
    • Insurance/Financial Services
    • Legislative & Regulatory Monitoring
    • Marketing Intelligence
    • Property & Casualty Insurance
    • Public Relations
  • News / Podcasts / Library
  • Contact
  • MENU

Court Says No to Attorney Fees

SHARE THIS

Second case in a row

Contingency Fees by Nick Youngson CC BY-SA 3.0 Alpha Stock Images

Many in Florida’s insurance industry say further consumer reforms wouldn’t be complete without tackling another cost-driver that didn’t make it into SB 76: attorney contingency fee multipliers.  Further proof came last week when an appeals court overturned a Miami-Dade County Circuit Court decision, finding the award of not only the multiplier – but the basic fees and costs in the case – “was not supported by competent, substantial evidence.”

Florida’s fee-shifting statute authorizes an attorney to recover a “reasonable fee” when their client prevails, utilizing the federal Lodestar method which multiplies the hours reasonably expended by a reasonable hourly rate.  It was Florida Supreme Court Chief Justice Barbara Pariente’s court in 2017 that turned that on its head by essentially allowing the use of fee multipliers any time.  (For a further explanation, read my March 2020 blog How a $41,000 Plumbing Leak Turned Into a $1.2 Million Attorney Fee)

Last week, Florida’s 3rd District Court of Appeal found the numbers didn’t add up in their ruling in Citizens Property Insurance Corporation vs. Joseph Casanas and Nancy Cervantes.  Plaintiffs in the underlying homeowners’ insurance case sustained damage to their roof during Hurricane Irma in 2017, reported the loss to Citizens and retained counsel to represent them before Citizens had an opportunity to investigate the loss or determine coverage (sound familiar?).  Citizens ultimately denied coverage after determining the damage was below the hurricane deductible.  Plaintiffs filed suit for underpayment of the claim in January 2018.  The case was minimally litigated—there were no depositions taken, no dispositive motions filed, few hearings, and no trial.  The case settled in mediation in January 2019 with a judgment in the amount of $35,000 entered in favor of plaintiffs, subject to motions for costs and fees.

The trial court determined the lodestar fee was $70,800 and added a 1.8 multiplier for a fee of $127,440.  It then added another $9,360 in litigation costs, plus a $13,800 fee for the plaintiffs’ fee expert.  Your “Price is Right” total for this showcase comes to $150,600, “nearly five times the amount of the $35,000 settlement,” the appeals court noted.  It picked apart the circuit court’s blanket adoption of fees and costs and based its overturning decision on one it just issued in Universal Property & Casualty Insurance Co. v. Deshpande, a “remarkably similar homeowner’s insurance claim where counsel was awarded an excessive and unsupported amount of attorneys’ fees,” the appeals court wrote.  It sent this case back to Circuit Judge Martin Zilber and ordered specific changes to lower the billable hours and other costs.

We remain puzzled that certain lawyers believe they should be entitled to two or three or four times their fees in cases that are simple disputes about the proper claim amount.  Again, this is an important cost-driver to our double-digit property insurance rate increases that could be addressed by today’s Florida Supreme Court or Florida Legislature.  Senator Jeff Brandes (R-Pinellas) tried to do so in last spring’s legislative session with SB 212, which would allow contingency risk multipliers only “in a rare and exceptional circumstance with evidence that competent counsel could not be retained in a reasonable manner.”  The bill, unfortunately, never got a hearing.

LMA Newsletter of 11-1-21

SHARE THIS

Tags: Citizens Property Insurance Corporation vs. Joseph Casanas and Nancy Cervantes, Contingency Fee Multiplier, Florida Legislature 2022, Insurance Litigation, Jeff Brandes, Martin Zilber, Universal Property & Casualty Insurance Co. v. Deshpande

“I have followed your weekly newsletter and podcasts and now have a full appreciation for what you bring to this industry.  You are an inspiring force, plain and simple.  I wanted you to know that you make a difference.  Thank you for all you do!”

Jeffrey Karam, CPCU
Bradenton, FL

“Just wanted to say that I thoroughly love your newsletter. It’s is always informative and insightful to the ins and outs of our industry.  You are an inspiration and an important asset in the insurance world.  Keep up the great work!” 

Cynthia Scott, President
University Insurance Group
Davie, FL

“Lisa this is another great newsletter, and we appreciate the time and energy you put into these informative updates – you are on top of these topics!”

Mike Graham, CEO
Smart Vent Products, Floodproofing.com, & Risk Reduction Plus
Juno Beach, FL

“Your newsletter is fabulous!  I greatly appreciate the topics you expose, so that insurance professionals like myself can keep up with the latest events that affect the public we serve and ourselves.”

Cynthia Hoehn, Independent Property & Casualty Personal Lines insurance agent
Clermont, FL

“Lisa Miller is a true champion for the insurance industry, with her regular updates! We appreciate all you do and keeping us up to date on priority issues!”

Gillian Lloyd, Account Executive
Zywave
Milwaukee, WI

“Just a quick note to let you know how much I have appreciated your newsletter over the years and the assistance they offer for those in the field of claims. We depend on the information more than you will ever know!”

Laurie Rasberry, Chief Claims Officer
Acorn Claims
Prosper, Texas

“Another great Newsletter on Florida industry this week.  Your service and advocacy in Florida is very important to keeping me updated and apprised of the Florida insurance laws, trends and overall environment.  Something similar is very much needed in Louisiana, too.”

Jennifer Tedesco, Esq., Claims Director
Pharos Claims Services
Orlando, FL

“Great article on Risk Rating 2.0!”

Austin Perez, Senior Policy Representative for Federal Housing, Valuation, Insurance and Commercial Issues
National Association of Realtors
Washington, D.C.

“Thank you Lisa for staying on top of, as well as advocating, for Florida residents and legislative reform. Your newsletters are very informative and enjoy reading the points of view.”  

Shawna Miller, Sr. Claims Quality Assurance & Compliance Manager
Florida Peninsula Insurance Company
Jacksonville, FL

GET THE LATEST UPDATES IN YOUR INBOX FOR FREE!

SUBSCRIBE NOW

READ THE LATEST LMA NEWSLETTER ONLINE NOW

READ NOW

331 N. Monroe Street
Tallahassee, FL 32301
(850) 222-1041
[email protected]

*DBE certified through affiliate Lisa Miller Consultants

© Copyright 2008 - 2023
Lisa Miller Associates
All Rights Reserved
Managed by SiteBolts