House panel advances ‘accuracy in damages’ bill
What’s billed is rarely what’s paid.

By Staff Reports on January 29, 2020

Is this the year for tort reform?

The House Civil Justice Subcommittee passed a long-sought “accuracy in damages” reform package Wednesday, HB 9 by Rep. Tom Leek

Anyone who’s gone to a doctor knows that medical providers often bill more — sometimes much more — than what they’re actually willing to accept in payment. But in Florida, when juries calculate damages in personal injury cases, they generally only see the amounts billed. That artificially inflates jury awards, creating perverse incentives and raising the cost of doing business.

To address the issue, Leek’s bill ensures that juries base their awards for medical expenses on the usual and customary amounts actually received by medical providers. If the claimant has health insurance or government health coverage, the amounts paid or payable under that coverage are considered the usual and customary amounts.

At the subcommittee hearing, bill sponsor Leek used several charts to show how medical providers use “letters of protection” to inflate the medical bills presented to a jury.

A chart from Leek’s presentation illustrating the difference between amounts billed and amounts paid.

Lauren McBride, director of liability for Publix Super Markets, said, “we have over 450 cases in litigation. In Florida, 61% of the claims have letters of protection. Of those claimants, 62% have health insurance but choose not to use it because, we believe, they are being told not to use their health insurance by their attorneys who are sending them to doctors that they have relationships with, and juries should know about that.”

Andy Bolin, representing the Florida Justice Reform Institute, said, “the intent is to show the juries the amounts typically received from those programs, whether they’re private or government, but the bill doesn’t require us to stand up and tell the jury what insurance the claimant has.”

The committee passed the bill 10-4. The Senate Judiciary Committee passed companion legislation, SB 1668 by Sen. David Simmons, on Tuesday.

https://floridapolitics.com/archives/317427-house-panel-advances-accuracy-in-damages-bill

Ron DeSantis praised for improving legal environment

Florida went from No. 2 to off the list after DeSantis was sworn in.

By Drew Wilson on December 12, 2019

After a decade on the list, Florida has slipped out of the top-10 in the American Tort Reform Association’s annual “Judicial Hellholes” list.

The Florida Justice Reform Institute attributes the drop to Gov. Ron DeSantis, primarily for his selection of new justices on the Florida Supreme Court.

“When Governor DeSantis appointed Justices Barbara Lagoa, Robert Luck, and Carlos Muñiz to the Florida Supreme Court, he immediately and dramatically improved Florida’s legal environment,” FJRI President William Large said.

“Governor DeSantis showed tremendous leadership by appointing judges who will say what the law is, not what they think it should be, and who show deference to the legislature as the rightful policymaking branch of government.

“Now, with the selection of Justices Lagoa and Luck to the 11th U.S. Circuit Court of Appeals, Governor DeSantis has two more Florida Supreme Court appointments. Combined with the upcoming Legislative Session, Governor DeSantis has the opportunity to permanently stamp an incredible legacy on Florida’s legal environment,” Large concluded.

The American Tort Reform Association list evaluates jurisdictions, courts and legislatures in regards to litigation policies and “litigation tourism.”

This year, the Philadelphia Court of Common Pleas topped the list. Also making the top-10 were California, Louisiana, Georgia and Oklahoma.

The sharp drop also earned DeSantis some praise from American Tort Reform Association, however it said it’s still keeping a close eye on the Sunshine State.

“A former No. 1 Judicial Hellhole, Florida took great strides toward improving its legal climate in 2019. Although there is much work to be done, the election of Governor Ron DeSantis (R) has heralded a sea change in Florida’s legal landscape, beginning with the appointment of several new Florida Supreme Court justices. This new court is deferential to legislative efforts to stop lawsuit abuse and poised to correct the course set by the prior activist court,” the association’s write up reads.

https://floridapolitics.com/archives/313441-ron-desantis-praised-for-improving-legal-environment

2019 is on track to have as many auto glass lawsuits as last year

By Drew Wilson on November 12, 2019

Suing over car window and windshield repair fees is a booming business, according to a new report from the Florida Justice Reform Institute.

FJRI’s Auto Glass AOB Data Update, released Tuesday, shows 2019 is on track to have as many auto glass lawsuits as last year. But FJRI said the number could be much higher, as their report only tracks auto glass AOB lawsuits filed by companies with “glass” or “windshield” in their names.

“Our updated report shows how persistent AOB lawsuits based on the one-way attorney fee continue to drive up overall litigation and costs for policyholders,” FJRI President William Large said.

AOB, short for assignment of benefits, is a legal process that allows policyholders can sign over their insurance benefits to a third-party in exchange for a quick repair.

Those on the other end of the AOB agreement often sue insurance companies to collect fees. Insurers say those lawsuits are often for inflated claims. When coupled with the one-way attorney fees statute requiring insurance companies pay the cost of litigation if they lose, premiums are increasing.

“Although the benefits of the one-way attorney fee statute were clearly intended for premium-paying policyholders, corporate assignees continue to cash in on its common law extension,” FJRI counsel and Capital City Consulting lobbyist Ashley Kalifeh said.

Lawmakers passed an AOB reform package last year, but it only applied to home repairs. Auto glass AOBs were carved out in the closing days of the 2019 Legislative Session.

The auto glass language was removed after complaints from independent auto-glass repair shops, which said they were being shortchanged by insurers and were forced to sue in order to get fair pay for their work.

Still, FJRI’s report shows nearly all auto glass lawsuits come from just 15 law firms — one firm, Malik Law, accounts for nearly 30 percent of all such lawsuits filed this year.

Additionally, the vast majority of auto glass lawsuits are in Hillsborough and Orange counties. FJRI speculates that’s due to higher attorney fee awards in those counties.

“Last year the legislature acted boldly to address rampant AOB lawsuits in the context of property insurance claims.” Large said. “Now, the legislature should continue their good work and pass AOB lawsuit reform for auto glass claims.”

https://floridapolitics.com/archives/310935-report-auto-glass-aobs-arent-slowing-down

Legislature approves upping county lawsuit threshold
The bill would raise the maximum damages handled in county court cases to $30,000 on Jan. 1

By Drew Wilson on May 3, 2019

The House and Senate voted unanimously Friday to for a bill that could see more lawsuits handled in county courts.

Since 1992 there has been a $15,000 limit on damages in civil suits, also called “small claims,” filed on the county level.

Lawsuits above that threshold are handled in circuit courts.

HB 337 would raise the maximum damages handled in county court cases to $30,000 on Jan. 1, 2020, and to $50,000 by Jan. 1, 2022. The $15,000 limit would remain in place for cases filed before Dec. 31, 2019.

Lawmakers have cited the current caseloads in circuit courts as the reason for the change.

“We have an overburdened circuit court at this point,” Sen. Gayle Harrell, a Stuart Republican, said last month.

The Florida Supreme Court has recommended the threshold be increased to $25,000. The Florida Justice Reform Institute noted the high court found the increase to $50,000 to be of most concern.

With Friday’s votes, the bill heads to Gov. Ron DeSantis.

https://floridapolitics.com/archives/295584-legislature-approves-upping-county-lawsuit-threshold