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Florida Justice Reform Institute

Florida Senate backs Covid-19 protection for businesses

January 26, 2021/in Jacksonville Business Journal

 

Jacksonville Business Journal

Florida Senate backs Covid-19 protection for businesses

COVID coronavirus rendering DOWELL

By Christine Sexton – News Service of Florida
January 26, 2021

The measure would shield companies from liabilities.

Tallahassee, FL – The Senate Judiciary Committee on Monday approved a proposal that would give Florida businesses that “substantially” comply with public-health guidelines broad protection from coronavirus-related lawsuits filed by customers and employees.

The bill (SB 72) would not apply to health-care providers such as hospitals, nursing homes and physicians, who have been clamoring for protections since spring. Instead, the bill would help shield other types of businesses and educational and religious institutions from claims for damages, injuries or deaths.

The Republican-controlled committee spent more than two hours debating the bill and four amendments offered by Democrats before voting 7-4 along party lines to move it to the Senate Commerce and Tourism Committee.

“I promise all my bills will not be like this. I promise that we will work together in most of our legislation in a much more, I believe, collaborative way to address this,” said Judiciary Chairman Jeff Brandes, a St. Petersburg Republican who is sponsoring the bill.

Without the legislation, Brandes said businesses could face lawsuits if they did not “wholly” comply with the various public-health orders issued at the state, local and federal levels.

“They would have been subject to lawsuits that could have put them under. Not only businesses but homeowners against homeowners, parishioners against pastors, and I think that’s what this legislation does,” Brandes said. “It says, ‘Look, we need to create a safe harbor for those businesses that substantially complied with the guidelines.’”

The proposal’s supporters contend employers that have been struggling to remain in operation during the pandemic are at risk of getting sued. But a Senate staff analysis said only six lawsuits have been filed.

Florida Justice Reform Institute President William Large, however, said his research indicates that 53 lawsuits have been filed across the state. Large said litigation has been filed against nursing homes and cruise lines, neither of which would be protected under the bill.

Large asked senators to ensure that they consider similar legislation to protect health-care providers.

“Sometime in the future, make sure our health-care providers are included in a bill that substantially looks like this,” said Large, whose business-backed group lobbies on a wide range of issues related to limiting lawsuits.

Brandes’ bill would require plaintiffs to file claims within one year after incidents. They would be required to obtain affidavits from Florida physicians attesting that the defendants’ acts or omissions caused the damages, injuries or deaths.

Businesses that courts deem have “substantially” complied with government-issued health standards or guidance would be immune from liability. The bills also would make it harder to win lawsuits, raising the bar of proof from simple negligence to gross negligence and upping evidentiary standards from the current “greater weight of the evidence” to “clear and convincing evidence.” 

Democrats on the committee proposed amendments that were defeated or withdrawn. For example, Sen. Tina Polsky, a Boca Raton Democrat who is an attorney, filed an amendment that would have required a “qualified medical expert” to sign an affidavit that a plaintiff was positive for COVID-19 at the time the cause of action accrued and that the plaintiff’s infection resulted in injury, damages, or death.

Polsky’s amendment would have deleted the provision in the bill that would require physician affidavits. In offering her amendment, Polsky said a physician would not be qualified to determine whether a business’ actions caused the COVID-19 infection.

The Republican-led Legislature unveiled the Senate bill and its House counterpart (HB 7) this month. The bills are identical, and House and Senate leaders have thrown their support behind the proposals. The House bill cleared its first subcommittee last week in a party-line vote.

Lawmakers are considering the proposals as the numbers of COVID-19 cases and deaths have surged in Florida during the fall and winter. As of Monday, 1,658,169 cases of COVID-19 and 25,446 resident deaths had been reported in Florida since the pandemic hit.

Bill Herrle, executive director of the small-business group NFIB Florida, said businesses are keenly aware the liability proposal is moving through the Legislature.

“I can assure you that business owners are very aware that you are addressing this issue; that  you are debating it today,” Herrle said. “And the thing they like about it the most is it’s being done today here at the very outset of the legislative session.”

But Sen. Perry Thurston, a Fort Lauderdale Democrat who is an attorney, said he didn’t think liability protection was the most important COVID-19-related issue for the Legislature to tackle first as it prepares for the March 2 start of the annual session.

“Blanket immunity that we have here is not what I think should be our first line of attack on this virus that has plagued our community,” Thurston said, adding that he gets calls about food insecurity and evictions and job loss. “One of the speakers talked about the fact that this is the first item of business for the Florida Legislature. I think it’s something that we should be addressing. But when I have to go back to my community and talk about people being evicted, people having food insecurities, life or death issues, I think it’s a sad reflection on the state that this is what we choose to address first as it relates to this virus.”

https://www.bizjournals.com/jacksonville/news/2021/01/26/florida-senate-backs-covid-19-businesses.html 

https://www.fljustice.org/wp-content/uploads/2024/11/fjri-news.jpg 800 800 RAD Tech https://www.fljustice.org/wp-content/uploads/2024/11/Florida-Justice-Reform-Institute.jpg RAD Tech2021-01-26 15:49:582024-11-25 08:42:15Florida Senate backs Covid-19 protection for businesses
Florida Justice Reform Institute

Florida tort law makes it hard for truckers

March 28, 2019/in Jacksonville Business Journal

 

Jacksonville Business Journal

Florida tort law makes it tough for truckers

Truckers

Florida Rock & Tank Lines President and CEO Rob Sandlin, and Patriot Transportation and

FRPH CEO Tom Baker. — JAMES CRICHLOW

Will Robinson

By Will Robinson – Reporter, Jacksonville Business Journal

Mar 28, 2019, 2:51pm EDT

Trucking companies across Florida share a common pain point: double-digit growth in insurance costs. In a perfect storm of more expensive vehicles, declining insurer competition and “nuclear verdicts,” some in the industry believe this is the new norm.

Jacksonville-based Patriot Transportation (Nasdaq: PATI) is among those that have seen double-digit insurance costs growth in consecutive years. The company, which primarily carries fuel to gas stations across the Southeast, blames the rapidly rising costs on a Florida tort law that allows juries to award damages if a trucker is 1 percent negligent, versus states like Georgia that demand litigants prove a trucker is 50 percent negligent.

“That [50 percent] threshold is much more reasonable,” said Matt McNulty, CFO of Patriot. “It discourages frivolous suits.”

In Florida, losses from insurance claims and settlements have become so onerous that major insurers are leaving the Sunshine State altogether. Major insurance carriers Zurich Insurance Group AG and American International Group Inc. have both reduced their offerings in Florida and elsewhere.

The shrinking supply of insurers in Florida pushes costs up further.

“They couldn’t charge enough to make it make sense to be here,” said McNulty.

In light of Florida’s low negligence standard, Patriot has joined efforts to lobby for tort reform, CEO Rob Sandlin said. He noted that both the Florida Trucking Association and Florida Chamber of Commerce are lobbying to change the state’s tort laws, and other businesses, like property owners liable for slip-and-fall claims, are as well.

“There’s more and more interest in change from Florida businesses,” he said.

A 2018 Florida Justice Reform Institute report estimates Florida loses more than $11.8 billion and 126,000 jobs each year due to what it deems excessive litigation. The report further claims that Florida loses $615 million in annual state revenue and $516 million in annual local government revenues, according to data compiled by The Perryman Group.

Much of those estimated losses, however, belong to the retail industry. The transportation and utilities sector is responsible for about 8 percent of the losses, $1.8 billion, and about 4 percent of the jobs lost, 5,280.

Despite the tort law Patriot is pushing to change, Florida did not make the top 10 list of verdicts assembled by Carr Allison, a Southeastern law firm and national trial counsel for seven of the top 10 motor carriers, in 2016.

Jacksonville-based Landstar System Inc. (Nasdaq: LSTR) made the list twice, though for verdicts in Georgia and California. In fact, a Carr Allison presentation slide singles out Landstar as proof that verdicts are escalating, noting the two previous verdicts as well as a $15 million verdict in Florida and a $19.5 million verdict in Arizona.

Beyond tort reform

But to Amy Wagner, vice president of risk management at fleet management company Ryder System Inc. (NYSE: R), high verdicts and tort laws are only part of the reason insurance costs are rising. Wagner believes consecutive double-digit insurance cost growth is here to stay.

In the years leading up to 2008, insurance premiums were largely stagnant, Wagner explained. But since 2008, vehicles have become more expensive to repair or replace; more drivers are on the road; the proliferation of smart phones has been matched by the proliferation of distracted driving; and high employment has given truck drivers their choice of jobs, leading to higher turnover and with it, higher accident rates. 

To combat this confluence of factors, Ryder has turned to technology. Camera systems installed on the company’s entire fleet of trucks in 2017 record and save the moments leading up to and immediately following traffic incidents. This allows the company to quickly either accept responsibility or dismiss fraudulent claims.

The company has also installed adaptive cruise control, which automatically applies breaks to prevent rear-end collisions, and technology to prevent roll-overs. LED lights on Ryder trucks increase visibility and reduce driver fatigue.

“We’re taking a comprehensive approach to mitigating risk,” said Wagner.

Not all of Ryder’s mitigation strategies are technological. It is also working to reduce driver turnover, since research suggests that drivers are more prone to accidents in their first 12 months on the job. But given a nationwide driver shortage, that is no easy task.

More than 60,000 truck driver jobs went unfilled in 2018, according to the American Trucking Associations, with that deficit expected to reach 175,000 by 2026. The average age of truck drivers is 55, according to the Bureau of Transportation Statistics, putting many drivers within retirement age.

To retain its drivers, Ryder pays well and recognizes excellence with driver of the month and driver of the year awards, Wagner said. It also has a “Captain of the Ship” policy that allows drivers who feel unsafe for any reason to call dispatch and get taken off of a route. So far, the efforts are paying dividends.

“We do have lower than average turnover,” said Wagner.

Patriot, too, introduced a number of ways to attract and retain drivers last year, the company disclosed in its shareholder meeting in January. Despite boosting pay, the company still saw 68 percent driver turnover in 2018.

https://www.bizjournals.com/jacksonville/news/feature/statewide-transportation/2019/03/florida-tort-law-makes-it-tough-for-truckers.html

https://www.fljustice.org/wp-content/uploads/2024/11/fjri-news.jpg 800 800 RAD Tech https://www.fljustice.org/wp-content/uploads/2024/11/Florida-Justice-Reform-Institute.jpg RAD Tech2019-03-28 15:57:382024-11-27 20:11:07Florida tort law makes it hard for truckers
Florida Justice Reform Institute

Changes in Law,Economy Affecting Legal Business

January 23, 2008/in Jacksonville Business Journal

 

Jacksonville Business Journal

Changes in law, economy affecting legal business

By Jeff Brooks  –  Correspondent

Jan 28, 2008 Updated Jan 23, 2008, 8:16pm EST

Legislative reforms and economic conditions have shifted the scales attorneys use to gauge their business in a state affected in recent months by tort reform and a downturn in the real estate market.

Tort reforms, including medical malpractice caps and the 2007 repeal of joint and several liability, which required defendants to pay more than their share of economic damages, have changed the landscape for law practices.

“Tort reforms have definitely had an impact on how they conduct their business, especially right from the start when they evaluate a case,” said Rick Karcher, a professor at Florida Coastal School of Law who teaches tort law.

Karcher said a good example is the repeal of joint and several liability, which meant that if a defendant loses, they now pay only the percentage of damage equal to the percentage they were at fault.

“If you assess your case and you have three defendants and two of them are uncollectable and one is collectable, but you suspect they’re only 5 percent at fault, that’s going to have a huge bearing,” Karcher said.

The basic concept of joint and several liability is reducing damage awards, meaning an attorney will have to decide if it’s economically feasible to pursue the case.

Eddie Farah, an attorney at The Law Firm of Farah & Farah, said reforms aimed at reducing damage awards impact attorneys and consumers.

“They impact the business because anything that impacts the consumer impacts the business because we’re making recovery on behalf of the consumers,” said Farah, who said collecting medical damages is becoming more difficult because of recent medical malpractice reforms.

Farah said caps placed on medical malpractice awards have limited the amount that can be awarded for pain and suffering. And federal pre-emptions for medical device cases means patients can’t sue for negligence if the U.S. Food and Drug Administration sanctions a product.

“If a housewife loses a leg because of a malpractice situation, what are her economic losses?” Farah said. “A lot of attorneys won’t handle claims unless there’s large economic losses because they can’t justify all the work and money it takes to handle those cases.

Recommended

“It’s cutting a lot of people out of the system who do have valid claims.”

While attorneys are adapting to tort reforms, William Large, president of the Florida Justice Reform Institute, said it may be several years before the real impact of recent reforms are known because of how long it takes a case to work its way through the legal system.

“What we’re seeing is the frequency of medical malpractice cases have gone down, but the severity of those cases have remained the same,” Large said. “A medical malpractice case is still a big issue-type case with substantial damages. It’s probably too early to tell the full impact of medical malpractice reform until all the appellate rulings are finalized.”

In the constantly changing legal world, it’s not just legislative reforms impacting an attorney’s practice. Fluctuations in the economy, such as the slumping housing market, also play a big role.

Doug Stanford, a partner at Smith, Gambrell & Russell LLP, said law firms are having to shift their focus because of the residential real estate slowdown.

“There’s a lot of foreclosures out there,” Stanford said. “There’s only a select number of lawyers who specialize in foreclosures and you’re going to see [the number of foreclosure specialists] increase.”

Meanwhile, real estate attorneys who handled property sales closings are seeing a dramatic drop in business. Attorneys who did well during the real estate boom are “wondering where the next job is going to come from,” said Stanford.

“Many are adjusting to the marketplace,” Stanford said. “Companies that are any good are able to adapt to changing conditions.”

Foreclosures were up about 30 percent in 2007. According to Duval County Clerk of the Courts, there were 9,654 foreclosures in 2006. In 2007, there were 12,537 and another increase is expected in 2008.

“There are many more foreclosures,” said Mark Heekin of the Heekin Law Firm. “There’s also a lot of people contacting me to negotiate a short sale with the lender. They want to try and sell the property and get the lender to accept less than they are actually owed.”

Heekin said in the past three weeks, he has seen more residential sale contracts, which may be a sign of better times.

“With interest rates on residential mortgages dropping and residential home prices dropping,” Heekin said, “we’re thinking there may be at least a minor boom in transactions.”

[email protected] | 396-3502 

https://www.bizjournals.com/jacksonville/stories/2008/01/28/focus2.html 

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