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Florida Justice Reform Institute

Tort Reform: When Elections Should Have Consequences

March 22, 2015/in Sunshine State News

 

 Sunshine State News

By NANCY SMITH– March 22, 2015 – 7:00pm

At any time during a Florida legislative session, trial attorneys in the Capitol are like pollen in a field of ragweed. They’re everywhere. Walk anywhere, you’re infected. But this is the week it gets worse.

Starting Tuesday, a quartet of tort reform bills comes before various committees. Expect trial attorneys to choke the halls, advocating against anything that threatens to halt their gravy train.

The real issue here is how the GOP lawmakers will respond this time. Will they remember their promise to the people who supported and elected them to make common-sense reforms to our civil justice system? Were they serious about improving the lot of working people, of families and students, by fostering the health of a strong business environment? Or will they roll over in a squishy heap and let the lawyers turn them into road kill?

 “Every year Associated Industries of Florida looks to improve the environment for jobs and the economy, and to make the state more competitive for business,” says AIF president and CEO Tom Feeney. “And I think we have a lot to brag about. But one area where we fall down is civil justice.” Florida’s “lottery mentality” of finding a deep-pocketed lawyer who will file an inflated claim and go for broke drives up costs for everybody, Feeney says.

Each election year while campaigns are in full cry, I hear big talk from Republican legislators. They say they understand that abusive tort litigation and the underlying liability that tort cases entail hurt the economy. They make it hard for businesses to maintain and create new jobs.

Certainly, they should know all that. They hear it like a jungle drum beat from the James Madison Institute, the Florida Chamber of Commerce, the Florida Retail Federation — in fact from all the organizations and associations fighting every day to make Florida a pro-business, anti-litigious place.

But year after year, it seems, the trial lawyers find sympathy and support among conservative Republicans, even though, frankly, the Morgan & Morgan crowd did nothing for them. This year is no exception. By more than 8-to-1, trial lawyer money went to Democratic candidates and liberal issues. (Check out the report of PAC contributions involving the Florida trial lawyers that sued the tobacco companies. It’s in the attachment below this story.)

One example of these lawyers’ disdain for GOP legislators is visible in the contribution of Citizens Alliance for Floridas Economy — a committee set up specifically to target Republican House candidates Colleen Burton of Lakeland and Julio Gonzalez of Venice.  CAFE spent $498,500 — half a million dollars — to defeat just these two. They were unsuccessful, but think about it …

There is a built-in prejudice within the Florida court system in favor of litigation. It’s why the American Tort Reform Association ranked the Florida Supreme Court as the nation’s fourth biggest “judicial hellhole.” Within the system, the perception is that judges are smarter than ordinary people and, therefore, if issues are left up to legislators, they may well screw things up. So trial lawyers work hard to keep Tallahassee lawmakers out of their business.

The result: Virtually everyone in Florida — from neighborhood grocers and family physicians to local government service providers and parents trying to make decisions about their childrens sporting activities — has felt the impact of the state’s “judicial hellhole” environment.

Yet, here we are. The well-organized, very aggressive trial lawyer lobby — at this moment one of the largest lobbies working the Capitol — is running around, enlisting the cooperation of Republican representatives and senators.

It’s time for Republicans to remember that elections do — or should — have consequences.

Here are the bills likely to see the light of day in committee this week:

1. Damages in Personal Injury Actions (Accuracy in Damages)
House Bill 1199 by Larry Metz and Senate Bill 1240 by Garrett Richter.

Provides for calculation of damages; specifies that certain evidence may not be used for certain purposes; provides that difference between amount originally billed by health care provider who has provided medical or health care services to claimant and actual amount remitted to provider is not recoverable; limits amount of damages in certain actions involving liens or subrogation claims by certain payors..

2. Civil Remedies Against Insurers (Bad Faith)
House Bill 1197 by Mike Hill, Kathleen Passidomo and Senate Bill 1088 by Jeff Brandes.

Requires insureds, claimants, or persons acting on their behalf to provide insurer with written notice of loss as condition precedent to statutory or common-law action for third-party bad-faith failure to settle insurance claim; provides that insurer is not liable for claim of bad-faith failure to settle claim if certain conditions met.

3. Punitive Damages (General Tort Liability)
House Bill 1067 by David Santiago and Senate Bill 978 by Garrett Richter.

Deletes language applying punitive damages limitation for certain civil actions prospectively only and applies it to all actions in which judgment has not been entered, regardless of when cause of action arose.

4. Assignment of Post-loss Insurance Policy Benefits (Insurance Claims)
House Bill 669 by Insurance and Banking Subcommittee and John Tobia and Senate Bill 1064 by Dorothy Hukill.

Provides that assignment or agreement that transfers authority to adjust, negotiate or settle claim is void; prohibits assignment of insurable interest except to subsequent purchasers after loss; authorizes insurance policy to prohibit assignment of post-loss benefits; provides exceptions; provides requirements relating to communications regarding claims; revises time periods relating to initial, reopened and supplemental property insurance claim notices and payments; making conforming changes to Homeowner Claims Bill of Rights.

One of the biggest abuses in the courts is the awarding of punitive damages. They are infrequent, but their frequency and size have grown in recent years. More important, says the American Tort Reform Association, they are routinely asked for in civil lawsuits, and when astronomically large amounts are rewarded, they seriously distort attempts at settlement and lead to wildly inconsistent outcomes in similar case.

It’s those wildly inconsistent outcomes that trouble AIF’s Feeney.”We think if punitive damages are going to be assessed, they should apply equally to all industries,” Feeney explained, “and they should be available only in limited cases.” He said the tobacco industry, for instance, has paid for actual damages, as it should have, but it’s also paid millions of dollars in punitive damages more than once. “All companies should be treated equally under the law.”

Feeney says Florida needs legislation that addresses the problem of multiple punitive damages awards to protect against unfair overkill.

In a conversation last Friday, William Large, president of the Tallahassee-based Florida Justice Reform Institute, explained the problem more succinctly than I have here:

“The trial bar is often adverse to many Republican candidates during elections,” Large said, “but they’re like the prodigal son. They come back year after year and they’re seemingly forgiven for being on the opposite side of pro-business, Republican candidates. And tort reform is often not addressed in the state Legislature.”

The Florida Chamber is partnering this year with the Florida Justice Reform Institute and the U.S. Chamber of Institute for Legal reform to fix Florida’s broken legal climate, which costs families $3,400 a year. Surely, that gives Republican lawmakers impetus to get tort reform done now, this year.

This year of all years, why would they want to cave? It’s doubtful the party or the sentiment ever will be more dominant than it is today — supported by a governor who wants Florida’s business climate to lead the nation. Time for a Republican reality check. Time for Repubs to dance with the partner who brung ’em.

Reach Nancy Smith at [email protected] or at 228-282-2423.

See the full article here. 

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Florida Justice Reform Institute

Legal Expert: ‘Tort Reform Only Works Around the Edges’

February 27, 2015/in Sunshine State News

 

Sunshine State News

By KEVIN DERBY– February 27, 2015 – 6:00pm

 At a Federalist Society event at Walt Disney World on Saturday, legal experts discussed Florida’s tort system which has led the Sunshine State to be labeled as a judicial hellhole.

 William Large, the president of the Florida Justice Reform Institute and Mark Behrnes, an attorney from Shook, Hardy & Bacon in Washington, D.C., made the case for tort reforms while  Darryl Parks from Parks & Crump in Florida noted some flaw in tort reform. Judge Barbara Lagoa from the Florida 3rd District Court of Appeal moderated the panel discussion.

 Large came out swinging at the judicial branch, insisting activist judges have usurped the role of the Legislature and noting the business community was contacting legislators in the effort  to make the judiciary say what the law is, not what it should be.

 Behrnes attempted to offer a national perspective on torts. Noting that many trial lawyers were nervous about tort reform, Behrnes noted 99 percent of law came from the bench, which he  labeled judge made and insisted tort reform efforts have not fundamentally altered the problem. Tort reform only works around the edges, Behrnes said.

 Going through the history of punitive damage cases, Behrnes said they exploded in recent decades, calling them an overnight dramatic change in the law.

 Noting the American Tort Reform Foundation ranked Florida as one of the worst legal climates in the nation and a judicial hellhole, Behrnes said much of the blame should be directed at  the Florida Supreme Court, especially for its decision in the Estate of McCall v. U.S. ruling last year.

 Judges have to be restrained, Behrnes said, noting they were inviting the Legislature and the federal judiciary to step in to rectify their decisions.

 Parks said he was a practitioner and came at the matter from a different perspective than Large or Behrnes, claiming that tort reform is only shifting the burden onto who ends up paying.

 When the system does tort reform, somebody will pay, Parks said. Its been my experience that Medicaid will pay. Reviewing tort reform efforts in Florida, Parks said not much has  changed for consumers. Premiums did not go down in this state.

 Noting the business community was behind tort reform, Parks asked if their costs should be taken up by all taxpayers, something he said would happen with higher Medicaid costs.  Should we allow them to shift their burdens to all the taxpayers? Barnes asked about the business communitys efforts on tort reform.

 While Large and other advocates of tort reform have called for going to the Daubert standard for expert witness testimony instead of the Frye standard currently used, Parks said that kind  of change would lead to more confusion in the courtrooms.


Reach Kevin Derby at 
[email protected] or follow him on Twitter: @KevinDerbySSN

 See Full Article 

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Florida Justice Reform Institute

Rick Scott Signs Expert Witness Standard Overhauls into Law

June 4, 2013/in Sunshine State News

 

Sunshine State News

Rick Scott Signs Expert Witness Standard Overhauls into Law

By ERIC GIUNTA
June 4, 2013 – 6:00pm

Florida law school graduates studying for their bar exams better take note: Gov. Rick Scott has signed two pieces of legislation which overturn nearly century-old standards governing what type of expert witness testimony is admissible in state courts.

On Wednesday, Scott added his signature to HB 7015 (Expert Testimony) and SB 1792 (Medical Negligence Actions), two legal reform bills that were major priorities of Florida’s business community, and whose passage was vigorously opposed by the state’s trial lawyer lobby.

Every decision that I make comes down to one word JOBS, Scott said in a statement announcing his signatures. By signing these important bills, well improve the business climate in the Sunshine State, which means more jobs and opportunities for Florida families.

With Scott’s approval of HB 7015, state courts will now only be allowed to admit expert testimony if the judge finds it to be based on scientifically sound principles. The new law abolishes the 90-year old “Frye” standard (named after a 1923 U.S. Supreme Court case), which allowed expert witnesses in civil cases to offer mere subjective opinion (a type of testimony never allowed in criminal trials). Florida has now adopted the federal Daubert standard (named after a 1993 Supreme Court decision), which means experts will only be allowed to testify if they can prove to a judge that their theories or techniques have been tested, have been subject to peer review, have a low rate of error, and have received general acceptance in the scientific community.

“HB 7015 is an historic achievement,” William Large, president of the Florida Justice Reform Institute and Jeb Bush’s former deputy chief of staff, told Sunshine State News shortly after the bill was signed into law.”By replacing Floridas 90-year-old expert evidence standard with the modern Daubert standard used in all federal courts and the courts of many states competing with Florida for new jobs, Governor Scott and the Florida Legislature have taken a giant leap toward ending the forum shopping that currently imports litigation instead of jobs into Florida.”

SB 1792 provides that expert witnesses can only testify in medical malpractice cases if they have practiced in the same specialty that is in question, replacing current law that allows them to testify so long as they practice in the same general field. The new law also guarantees the right to legal representation for all doctors who are made to testify in a legal proceeding, if they are not defendants.

Floridas toxic medical liability climate has led to outrageously high medical malpractice premiums, and with so many citizens in need of care, we simply cant afford to drive away good doctors, Dr. Ralph Nobo, Florida Medical Association, said in a statement. As a practicing OB/GYN, I know that this law will make a real difference for physicians while improving Floridas reputation as a good and fair place to practice medicine. This is a victory for doctorsandpatients.

Reach Eric Giunta at [email protected] or at (954) 235-9116.

http://sunshinestatenews.com/story/rick-scott-signs-expert-witness-standard-overhauls-law

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Florida Justice Reform Institute

Should Florida Change the Way Judges Are Appointed

April 18, 2013/in Sunshine State News

 

Sunshine State News

Should Florida Change the Way Judges Are Appointed?
By ERIC GIUNTA
April 18, 2013 – 6:00pm

The Florida judiciary has incited its fair share of controversy over the last several years, despite the fact that the judicial appointment process is mysterious to most Floridians.

A measure currently making it way through the House, HB 7033, would provide that the five members of each court’s JNC appointed directly by the governor serve at his pleasure, whereas under current law they can only be removed, before their term expires, for cause — i.e., in the case of crime or some serious ethical lapse.

The bill seems to have stalled in that chamber’s Judiciary Committee; it does not have a Senate companion. Nevertheless, let’s look …

Popular confusion is or is perceived by many to be so rife that last year the Florida Bar launched an educational program, titled The Vote’s in Your Court, ostensibly aimed at providing objective information about the judicial appointment and retention process, but accused by many conservatives of being a not-so-veiled campaign front for three controversial state Supreme Court justices who were up for retention in November.

What we have now is better than a purely elective process, Judge William Palmer of Florida’s 5th District Court of Appeal tells Sunshine State News. It does take some of the politics out of it.

Palmer is chairman of the Florida Bar’s Judicial Nominating Procedures Committee, which assists the governor in matters relating to the judicial nominating commissions (JNC) process.

JNCs are Florida’s 26 bodies one each for Florida’s 20 circuit courts, five district courts of appeal, and the Florida Supreme Court which are charged with giving the governor the names of three to six candidates whenever a judicial seat becomes vacant; the governor may select one of these nominees to occupy the vacant seat, or can reject the entire list and demand new submissions.

(Trial court judges are elected by voters in their district, except when a vacancy occurs midterm, in which event they are appointed through the JNC process.)

Each JNC has nine members: five are appointed directly by the governor, and two of them must be active members of the Florida Bar. The remaining four are chosen from a list of attorneys submitted by the Bar’s board of governors.

The current process for appointing JNC members has been in place since 2001, when then-Gov. Jeb Bush signed into law the first major reforms since the 1968 revision of the Florida Constitution did away with popular elections of all judges, including Supreme Court justices.

I think that the prior method of selecting members of the JNC was preferable to the way that it’s done now, Palmer opined, referring to the pre-1968 system, where three members were appointed by the governor, three by the Bar, and these six elected the remaining three, who had to be nonlawyers. I think having various groups have some input into the appointment makes more sense than the current system, where the governor appoints each of the members.

The 2001 changes brought some interesting results in their wake: under the 1968 system, every JNC had at least three non-attorney members, but could have had as many as six. Today, there is no such quota: a JNC can have as many as three nonlawyers or as few as none.

I’m generally in favor of getting as broad a spectrum of views as possible; I think there are perspectives that somebody can bring to the process as nonlawyers, Palmer explains. The main clientele of the courts are nonlawyers: the parties to the litigation [i.e., the plaintiffs and defendants] that come before the court.

But others believe that who sits on the JNC is less important than who has a hand in their selection.

I think it’s important that all members of a judicial nominating commission have a direct nexus to a duly elected government official, attorney William Large, president of the Florida Justice Reform Institute and Jeb Bush’s former deputy chief of staff, told SSN. Members of the JNC should be placed there by an elected official.

Large would not comment on whether the current system, under which four of the JNC appointees are filtered and limited by the whim of the Florida Bar, lived up to that criteria, but he did offer high praise for how Florida contributes to the nomination of its federal judges, U.S. attorneys, and U.S. marshalls.

I have nothing but high praise for the current manner in which federal judges are selected from the [three] federal judicial nominating commissions in Florida, because in Florida every member of the judicial nominating commission is directly appointed by a duly elected government official, either Senator [Bill] Nelson or Senator [Marco] Rubio, he explained. I think that’s a system that works well.

Large refers to a longstanding informal arrangement between Florida’s U.S. senators, and between them and the president of the United States. Although it is the president’s sole constitutional prerogative to appoint these federal officials, in practice he will select nominees whose appointment is not objected to by a state’s two senators, because there are informal maneuvers a senator can perform to block appointees he finds unacceptable: the U.S. Senate Judiciary Committee will usually not move nominees forward to the full Senate floor for a vote if a senator from that candidate’s home state objects.

Between themselves, Florida’s two senators have an informal agreement to receive recommendations from a special federal Florida JNC, whose members are appointed directly by the senators. (Large himself sits on this JNC.)

No attorney contacted for this piece would go on the record to criticize Florida’s judicial selection process, just as none would go on the record several months ago to publicly criticize the retention campaign of sitting Supreme Court Justices Barbara Pariente, Peggy Quince, and R. Fred Lewis.

Over the last few years, Florida’s Republican state legislators have tried,unsuccessfully to reform the judicial selection process; critics have charged them with wanting to stack the courts with Scott-appointees, while Republicans insist they’re just trying to make the process moredemocratic.

In November, Floridians voted down a constitutional amendment that would have brought state Supreme Court appointments more in line with the federal process: nominees would have been appointed by the governor and confirmed by the Florida Senate.

Reach Eric Giunta at [email protected] or at (954) 235-9116.

http://sunshinestatenews.com/story/should-florida-change-way-judges-are-appointed

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Florida Justice Reform Institute

Lawyers, Legislators Debate Changing Florida’s Expert Witness Standards

February 15, 2013/in Sunshine State News

 

Sunshine State News

Florida’s Expert Witness Standards

By: Eric Giunta  Posted: February 15, 2013

Witness on Stand

For the third year in a row, a bill has been introduced into the Legislature that, if passed, would alter Florida’s nearly century-old standards for admitting expert testimony in civil and criminal trials. The measure has sharply divided the legal community.

The Florida House Civil Justice Subcommittee approved PCB CJS 13-02 (“Expert Testimony”) along a 9-4 party-line vote Wednesday evening. The bill is the brainchild of subcommittee chairman Larry Metz, R-Yalaha, who is himself an attorney.

If approved by the full House and the Senate, the bill would change the standards by which Florida judges admit expert testimony. Under the current “Frye” standard (named after a 1923 U.S. Supreme Court case), expert witness testimony can only be admitted if it is “sufficiently established to have gained general acceptance in the particular field in which it belongs.” The proposed bill would align Florida’s courts to the federal “Daubert” standard (named after a Supreme Court case decided in 1993), which admits expert testimony so long as the judge finds it to be based on scientifically sound principles.

Florida is one of only 10 states that adhere to the older “Frye” standard.

At first glance, it might appear that Daubert is the more flexible standard, since it allows for the admission of scientific or technical testimony that does not enjoy scientific consensus, but there’s a little bit more to it than that.

In order to get around the narrowness of the pure Frye standard, the Florida Supreme Court has carved out a “pure opinion” exception, which allows experts to give testimony that does not meet the Frye standard so long as they are merely offering an opinion, as opposed to stating a scientific or technical fact.

Metz’s bill establishes a three-pronged test which must be applied by a judge before he allows an expert’s pure opinion testimony to be admitted:

a) The testimony must be based upon sufficient facts or data,

  1.              b) the testimony must be the product of reliable principles and methods, and
    1.              c) the expert must be shown to have applied the principles and methods reliably to the facts of the case.
            Experts are usually the only witnesses in a civil or criminal trial who are allowed to offer opinion evidence. Supporters of Metz’s bill say their ability to utilize that exception needs higher               scrutiny.

            “Most witnesses testifying in a court room are fact … Based upon their training and background and experience, we let experts do something that most witnesses can’t do; we let them offer       an opinion,” explains attorney William Large, president of the Florida Justice Reform Institute, in an interview with Sunshine State News. Large’s organization, which is affiliated with the             Florida Chamber of Commerce, supports the bill. “It is very profound, what [these experts are] allowed to do. Before they do that, we want to ensure that the judge can sufficiently act as a           gatekeeper.”

      The bill has far from unanimous support. It is being opposed by several trial lawyers (via the Florida Justice Association), House Democrats, and by each of the state’s 20 elected state               attorneys (who are represented by the Florida Prosecuting Attorneys Association [FPAA]).

      “The Supreme Court of Florida has twice, within the last decade, said that they wouldn’t adopt Daubert when given the opportunity because Frye was the more conservative and reliable              standard for handling expert witnesses,” insists Buddy Jacobs, general counsel for the FPAA. “The Daubert standard would be more expensive and would create trials within trials.”

      Jacobs explains to SSN that, under the current Frye standard, a judge does not “get into the weeds of what the science really is”; he simply acquaints himself – “for example, through                  reading a treatise” – with what standard procedure is in a particular field, and admits it without making a personal judgment about its validity.

      He says that, under the Daubert system, costs would skyrocket as defense attorneys would bring “experts testifying about experts testifying about experts,” while the state expends                    taxpayer dollars to produce more experts for rebuttal and to prosecute trials that are drawn out longer.

      Large dismisses as “absurd” accusations that defense attorneys would abuse the system in this way, deliberately dragging out a case in order to bill more hours. He points out that                     successful challenges to an expert witness can “effectively end” a litigation sooner than it would if an expert were given time to testify, particularly if that expert’s testimony is the only

    2.       evidence a plaintiff has at his disposal.

Rep. Cynthia Stafford of Miami, Democratic ranking member of the Civil Justice subcommittee and an attorney herself, tells SSN that Florida’s Frye standard has served the state well for almost 100 years, and she sees no reason to change it.

“Personally, I think that there is nothing wrong with the current standard. It’s not a broken system, and there’s no need to change it,” she says. “I think that the information that you would get from Daubert you would be able to extract from Frye as well. It will cost more money to get at the same result.”

Asked why she believed the business community was lining up behind Metz’s measure, she speculated that the prospect of “Daubert hearings” to challenge the validity of expert testimony “could potentially discourage people from bringing suit” against these businesses when there’s some sort of wrong alleged.

But the bill’s sponsor insists his measure is simply a matter of Florida going with what has worked best nationally.

“We have 20 years of experience in the federal system and a majority of states adopting Daubert, and others that are moving toward it,” Metz tells the News. “It’s clearly been validated over the time, and I think it would give a higher plane of credibility to experts that are testifying.”

Contact Eric Giunta at via email or at (954) 235-9116.

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Florida Justice Reform Institute

Florida House Subcommittee Approves Bill Changing Expert Testimony Standards

February 13, 2013/in Sunshine State News

 

Sunshine State News

Florida House Subcommittee Approves Bill Changing Expert Testimony Standards

BY: ERIC GIUNTA | Posted: February 13, 2013 6:31 PM

The Florida House Civil Justice Subcommittee has just approved PCB CJS 13-02 (“Expert Testimony”) along a 9-4 party-line vote.

If approved by the full House and the Senate, the bill would change the standards by which Florida judges admit expert testimony. Under the current “Frye” standard, expert witness testimony can only be admitted if it is “sufficiently established to have gained general acceptance in the particular field in which it belongs.” The proposed bill would align Florida’s courts to the federal “Daubert” standard, which admits expert testimony so long as the judge finds it to be based on scientifically sound principles.

Florida is one of only 10 states that adheres to the older “Frye” standard. 

“Florida’s courtroom standard for scientific evidence is 90 years old. Science has come a long way since then, and so should the law,” William Large, president of the Florida Justice Reform Institute, told Sunshine State News after the committee vote. “We applaud the House Civil Justice Subcommittee for introducing PCB CJS 13-02, which adopts the fact-based standard used in all federal courts, and we urge the Legislature to pass this measure and put certainty back into Florida’s courtrooms.”

Should Florida change its expert testimony standards? Stay tuned to SSN as we interview players on all sides of this debate to let you, the readers, decide.

See Full Article

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Florida Justice Reform Institute

Scott to Sign PIP Reform Law ‘Very Soon’

March 12, 2012/in Sunshine State News

 

Sunshine State News

Scott to Sign PIP Reform Law ‘Very Soon’

By Jim Turner | Posted: March 12, 2012

Gov. Rick Scott made a quick visit to the Senate floor late Friday after a bill to revamp personal injury protection auto insurance was sent to his desk.

Florida Chief Financial Officer Jeff Atwater, who along with Scott has been pushing to reduce fraud in the supposedly low-income system, expected the governor to quickly sign the bill as the final compromised effort leans heavier on the heavier on the Senate’s proposals. “Oh yes, I believe (the signing) will be very soon,” Atwater said outside the Senate Chambers Friday night. 

In a statement, Scott called the passage of the bill “a triumphant moment for the residents of Florida.”

Senators narrowly approved the bill, HD 119, that did require some backroom arm twisting and late-night compromises with the House that a number of legislators still believe could be made stronger if the Legislature were instead called back for special session on the topic.

Sen. Dennis Jones, R-Seminole, called the initial Senate bill, prior to a late Thursday night compromise, went after the “hucksters.”  He added that the House did some “voodoo” on the Senate and sent back a bill that is a “relief act” for insurance companies.

“This will have repercussions for people that are seriously hurt,” Jones said.

Sen Diaz de la Portilla, R-Miami, said the initial Senate bill, prior to a late Thursday night House compromise, went after the “hucksters.” He added that the House did some “voodoo” on the Senate and sent back a bill that is a “relief act” for insurance companies.

While Scott favored the House bill, Sen. Joe Negron, R-Stuart, argued that “the Senate won the majority of these arguments.”

In the deal, the House agreed to the Senate’s call for long-form accident reports, no caps on attorney fees, giving people two weeks instead of one to seek medical help, allowing chiropractors to treat patients, and imposing a prohibition on allowing massage therapists and acupuncturists to be eligible for PIP claims.

The Senate agreed to the House positions that gave insurers 90 days, instead of 30, to pay claims and included a prohibition on contingency-fee multipliers in determining attorney fees.

The bill would also establish an organization within the Division of Insurance Fraud to combat motor vehicle insurance fraud.

Health-care practitioners found guilty of insurance fraud would have their licenses revoked for five years and banned from seeking PIP reimbursement for a decade.

Another amendment added Friday requires the Office of Insurance Regulation to hire an independent consultant by September to calculate the savings expected from the act.

Within six months we expect to have a 10 percent reduction in premiums, not 10 percent or less, but a minimum of 10 percent; it could be more, Negron said. And then, within 18 months, to have a 25 percent reduction in premiums.

Insurance companies that fail to reach those marks would have to get approval from the state insurance commissioner to continue to sell PIP insurance, he said.

Florida Justice Reform Institute President William Large hailed the approval of the bill.

“Today, the Florida Legislature ended the practice of exponentially increasing litigation costs associated with PIP by removing the use of attorney fee multipliers, which benefited attorneys at the expense of consumers, Large stated in a release.

Office of Insurance Regulation spokesman Jack McDermott commended the legislators for backing the bill.

The Florida Legislature, along with Governor Scott and CFO Atwater, clearly recognize that it is critical that we change the incentives in the system to reduce PIP fraud, McDermott stated in a release.

Law enforcement officers were also pleased.

As an organization fighting criminal fraud on the front lines of Florida, we are pleased with the Legislature’s actions tonight, Sheriff Ben Johnson, president of the Florida Sheriffs Association, stated in a release through the Put the Brakes on Accident Fraud Coalition.

On behalf of all Florida drivers and business advocates, we join our friends in the law enforcement community in congratulating all consumers on their win tonight, said.

Two of the states biggest business advocates, the Florida Chamber of Commerce and Associated Industries of Florida, also cheered the bill in a release.

Florida drivers have consistently asked for legislation that addressed the cost drivers and rampant fraud in Floridas PIP system; and with not a day to spare, the Florida Legislature delivered a bill that has the potential to bring measurable relief, stated David Hart, executive vice president of the Florida Chamber.

Tom Feeney, president and CEO of Associated Industries of Florida, added that, Florida consumers and our law enforcement community have been plagued by a billion-dollar accident fraud problem; and tonight, the Florida Legislature heard their calls for help and delivered meaningful relief.

Still, for some legislators, the compromise went too far or didn’t do enough.

Sen. Larcenia Bullard, D-Miami, said the Senate gives in to the House too much by accepting the prohibition on multipliers.

In the House, where the bill was approved 80-34, Rep. Darren Soto, R-Orlando, argued that PIP has become like Frankensteins monster, can’t be fixed and should be replaced by bodily injury insurance.

PIP is an abomination — its turned on us, Soto said. Backers of the bill in the Senate and House were able to reach consensus on the differing positions of bills approved by both chambers early Friday.

Scott, who worked behind the scenes and publicly pushed for the revamping of the no-fault coverage, spent Friday morning crisscrossing the states airwaves — calling from the governors mansion in Tallahassee — as part of a last-day push.

Theres no reason it can’t get done today, Scott told 540 AM WFLA in Orlando.

On 1260 AM WFTW in Fort Walton Beach he expressed optimism that compromises would be found in the House and Senate bills.

Scott also called in to stations in Tallahassee, Tampa, Naples, Melbourne and Miami before legislators hit the floor to begin the final day of the regular session.
Scott also told 540 AM WFLA that he has been spending his week focused on PIP reform and has yet to go through the 3,000 lines of the state budget to consider vetoes.

Reach Jim Turner at [email protected] or at (772) 215-9889.

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Florida Justice Reform Institute

House Panel Rejects ‘Bad-Faith’ Insurance Reform Bill

January 25, 2012/in Sunshine State News

 

Sunshine State News

House Panel Rejects ‘Bad-Faith’ Insurance Reform Bill

By KENRIC WARD

January 25, 2012 – 6:00pm

A “simple” bad-faith insurance bill bogged down in complex legal arguments Thursday and failed to clear the House Civil Justice Subcommittee.

House Bill 427 set a 60-day time limit for insurers to resolve third-party claims.

Rep. Kathleen Passidomo, R-Naples, said her bill would have a “positive impact for small businesses by reducing ‘long-winded’ [court] cases.”

But the measure, a simplified version of a reform bill introduced last session, ran into heavy skepticism from Democrats and Republicans on the panel.

Rep. Matt Gaetz, R-Shalimar, noted that only three bad-faith cases had prevailed at trial against insurance companies in the past three years in Florida. Two of the cases were against one firm, Nationwide Insurance.

“That seems to be a weak predicate for this bill,” Gaetz said.

Fred Cunningham, of the Florida Justice Association, called HB 427 “a draconian solution in search of a problem.”

Passidomo responded that Florida has developed a reputation as a “haven” for bad-faith lawsuits, with the state accounting for 20 percent of the country’s bad-faith insurance claims from 2004-2008.

Former state Supreme Court Justice Charles Wells, speaking on behalf of the National Federation of Independent Businesses, warned, “We are headed for unaffordable liability insurance. The current law forces almost every claim into litigation. Only attorneys benefit.”

On the eve of Thursday’s hearing, reform proponents circulated a poll that showed 85 percent of small-business owners agreeing with the statement: “There are too many lawsuits in Florida, and our elected leaders should work to reduce the number of lawsuits.”

Some 73 percent of the respondents agreed that the Florida lawsuit system is among the worst in the country.” The survey by Public Opinion Strategies was conducted in December and January.

It is an undeniable fact that bad-faith judgments against insurers drive up premium costs for all insureds,” said William Large, president of the Justice Reform Institute.

Explaining one facet of the problem, Large likened liability insurance to a pool of money, with the pool filled by premiums and drained by claims.

“When an insured purchases and pays premiums on $10,000 of insurance, but the insurer pays $5 million in claims, someone has to fill up the pool. Initially, this amount may come out of an insurers profits, but eventually small businesses are the ones whose premiums are increased,” Large said.

Despite a parade of insurance executives testifying in favor of Passidomo’s bill, critics chipped away at whatever support she might have had going into Thursday’s hearing.

In the end, Rep. Larry Metz, R-Eustis, acknowledged, “The bill is not as good as it could be, and not as bad as opponents say it is.”

A companion measure — SB 1224 — by Sen. Steve Oelrich, R-Gainesville, is pending in the Senate. But with Passidomo’s bill sidelined, SB 1224 is unlikely to get a hearing.

Bill Herrle, head of the Florida chapter of NFIB, told Sunshine State News that reform proponents will push ahead with reform legislation — if not this year, then next.

The overarching goal, Herrle said, is to “take away lawyers’ disincentive to settle [cases]. We closed the door on joint and several liability last time. This is the personal-injury lawyers’ new avenue to deep pockets.”

“We’re not giving up. This issue is only growing,” Herrle said.

Contact Kenric Ward at [email protected] or at (772) 801-5341.

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Florida Justice Reform Institute

Crash Liability Bill Fast-Tracked Along With Other Larger Reforms

February 27, 2011/in Sunshine State News

 

Sunshine State News

Crash Liability Bill Fast-Tracked Along With Larger Reforms

By GRAY ROHRER
February 27, 2011 – 6:00pm

A bill that would allow juries to hear more evidence and consider the fault of all parties when considering damages in a product liability case is getting the same treatment as other, more comprehensive reform bills in the state Senate.

Senate President Mike Haridopolos, R-Merritt Island, stated last week that controversial bills dealing with education reform, Medicaid reform and a potential constitutional amendment to opt out of the year-old federal health-care law will be acted on next week when the legislative session begins.

But Senate Bill 142, sponsored by Sen. Garrett Richter, R-Naples, is also getting a first-week look.

The bill would overrule DAmario v. Ford Motor Company, a 2001 court case that found that the initial cause of an accident was irrelevant in a crashworthiness case, or a case that seeks damages for an enhanced injury caused by an alleged product defect. For example, in a slow-velocity crash caused by a driver that was texting, drunk, high, or otherwise distracted or impaired, that ended in the explosion of the car caused by a defective part, the events leading up to the crash would not be heard by a jury.

The Senate version of the bill is ready for the floor after sailing through the committee process, where Richter urged his fellow lawmakers to let juries hear all the facts surrounding a case, and was fond of saying that Lady Justice is blind, but she shouldnt be deaf.

“This is just common sense tort reform,” Richter said Monday.

Supporters of the bill say the DAmario ruling tilted the playing field to make it easier for trial lawyers to seek damages from automobile manufacturers.

This has dramatically changed how crashworthiness cases are handled, said William Large, president of the Florida Justice Reform Institute, a group that fights for tort reform.

While the bill has had a relatively smooth ride in the Senate, the bills path through the House is more complicated. An amendment that Large says is antithetical to the bill was added last month in the House Civil Justice Subcommittee.

The amendment, offered by Rep. Matt Gaetz, R-Fort Walton Beach, would instruct juries to consider only the fault of those responsible for the accident for injuries resulting from the accident, and only the fault of those responsible for the product default for enhanced injuries, or injuries that would not have been sustained if not for the product default.

“It quite frankly, guts the bill. It does exactly the opposite of what the bill was intended to do,” Richter said.

Large says the amendment essentially codifies DAmario, but other groups fighting the entire bill disagree.

Paul Jess, general counsel for the Florida Justice Association, formerly known as the Academy for Florida Trial Lawyers, prefers that no law dealing with crashworthiness cases be passed, but called Gaetzs amendment a compromise.

Clearly the House bill (as amended) is a middle position, Jess said.

Another amendment that was tacked on to the House version of the bill creates an exception for first responders — police officers, firefighters, EMTs — that places them under the DAmario ruling. A spate of cases involving police officers driving Crown Victorias — a Ford vehicle — that allegedly resulted in enhanced injuries brought the issue to the fore.

Sen. Mike Fasano, R-New Port Richey, offered a similar amendment to the Senate bill last week, but his efforts failed.

Theyre required to use those vehicles, they didnt have a choice, Fasano said, adding that he may try to tack on the amendment again when it comes before the Senate floor.

In discussing the amendment last week during the Senate Budget Committee, Richter said Fasanos amendment was an effort to essentially neutralize the bill, since it would open it up to Equal Protection constitutional challenges because it would treat first responders differently under the law than the rest of the public. Fasano, however, voted for the unamended version in the committee and says he supports the bill even without the amendment.

“(The trial lawyers’) goal is to create two separate classes, thus not providing equal protection under the law,” Richter said.

http://sunshinestatenews.com/story/crash-liability-bill-fast-tracked-along-larger-reforms

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Florida Justice Reform Institute

GOP has Trial Lawyers on the Run

December 1, 2010/in Sunshine State News

 

Sunshine State News

GOP Has Trial Lawyers On Run

By KENRIC WARD
December 1, 2010 – 6:00pm

rial lawyers are getting the bum’s rush at the Legislature, where a Republican supermajority — led in the Senate by right-minded President Mike Haridopolos — will push aggressively for tort reform next year.

The Senate Judiciary Committee expects to pass several business-friendly bills under its new chairwoman, Anitere Flores, R-Miami, who co-sponsored a workers’ comp reform bill when she was in the House last session.

Sen. Garrett Richter, R-Naples, has already introduced a “crash worthiness” bill (S.142) to redefine “negligence” and “liability.” More such legislation will be discussed next week, when the panel convenes Wednesday.

Trial lawyers have successfully bottled-up pro-business bills in past sessions. But the Republican electoral landslide this year further marginalized the trial bar’s remaining Democratic allies or purged them altogether.

“The (Judiciary) Committee seems almost stacked to obtain the results leadership wants,” says Dan Gelber, who served on judiciary panels in the House and Senate until retiring to run for attorney general this year.

Gelber, a Miami Beach Democrat, fears that in the current political climate, “the Legislature will look to settle political vendettas, rather than pursue good public policy.”

He said, “Too much of tort reform is about trying to guarantee a specific result. Justice is expected to be blind.”

“The supermajoriity should embrace and welcome the minority view,” Gelber said.

William Large, president of the Florida Justice Reform Institute, says he expects to see just that at the Senate Judiciary Committee.

“Anitere Flores is a fair person who is going to let everyone have their bills heard,” Large said.

Large added that “the main agenda for business is jobs, and an integral part of that is civil justice reform.”

“This is a tremendous opportunity for bills to be heard that haven’t been heard in the past,” he said.

Associated Industries of Florida says it welcomes the new alignment in the Senate, which now appears to be more philosophically in sync with the free-market sensibilities of the House and incoming Gov. Rick Scott.

“This is the best we’ve had,” said Jose Gonzalez, AIF’s vice president for government affairs. “We fully expect to see a range of tort-reform issues debated.”

Haridopolos, who appointed Flores to replace John Thrasher, an attorney himself, as Judiciary chairman, deferred comment.

“He’s not going to weigh in on every issue before the Senate.It’s a member-driven process.Every bill will get three stops and he’s not going to stop a bill from moving through the process,” Haridopolos’ spokesman David Bishop said.

Flores, considered by many a reform-minded attorney, was not available for comment. Nor was Thrasher, R-Jacksonville. A spokesman said he was ill.

Other members of the committee are Richter, Ellyn Bogdanoff and David Simmons. The lone Democrat is vice chairwoman Arthenia Joyner of Tampa. All except Richter, a banker, are attorneys.

Richter’s S.142 appears emblematic of the panel’s priorities this year.

The bill enables jurors to consider the fault of all persons who contributed to an accident when apportioning damages in a product-liability case alleging an additional or enhanced injury.

Providing “legislative intent to overrule a judicial opinion,” the measure declares that a finding of fault should be apportioned among “all responsible persons.”

AIF, which lists Ford Motor Co. as a member, calls Richter’s bill “a big priority.”

“It’s a fairness issue,” Gonzalez says. “Right now, a jury only hears about a faulty seat belt or bad roof. They don’t hear that the driver was on 10 different kinds of drugs and ran off the road.”

Last year, trial attorneys defeated a similar measure, claiming that the Florida Supreme Court was correct when it ruled that injuries and product defects were separate issues.

With trial lawyers’ voices muted at the Capitol this year, Republican lawmakers and the business lobby aren’t buying that distinction anymore. Passage appears virtually assured.

“We’re not saying automakers shouldn’t be liable for faulty products, but what really caused the accident,” Gonzalez said.

“This year there will be more steps taken (on civil litigation reform). This is one of them,” Richter told the News Service of Florida.

GOP leaders and plaintiffs’ lawyers are likely to clash over at least two other prospective bills: bad-faith claims and sovereign immunity.

Reform legislation on bad-faith claims would provide “safe harbor” for insurers by limiting the period during which a lawsuit can be filed against companies.

The sovereign-immunity legislation would shield emergency-room doctors from liability in certain cases.

Though physicians and GOP leaders haven’t always seen eye to eye, Gonzalez expects a united front this year, along with a “great coalition of employers.”

Gelber fears that “complex decisions” could get ramrodded through the new Judiciary Committee.

“People of the state will have to live with what the Legislature does,” he warns.

But GOP leaders, who have seen the trial bar derail or dilute tort-reform legislation in previous sessions, are determined to rebalance the scales of justice this year.

In a state where courts have been among the national leaders in awarding multimillion-dollar judgments against tobacco companies, business groups say it’s time for a fair shake.

“This will be a departure from the past,” Gonzalez said.

http://sunshinestatenews.com/story/gop-has-trial-lawyers-run

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