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Florida Justice Reform Institute

Insurance Attorney Fee Fight Refueled

March 14, 2025/in Tallahasssee Reports

By The News Service of Florida on March 14, 2025

By Jim Saunders, The News Service of Florida

TALLAHASSEE — More than two years after the Legislature clamped down on lawsuits against property insurance companies, a House panel Thursday reopened a major debate about attorney fees when homeowners and insurers battle over claims.

The House Civil Justice & Claims Subcommittee voted 16-1 to approve a bill (HB 1551) that would revamp a 2022 law that shielded property insurers from paying customers’ attorney fees. The insurance industry argues the law has reduced costly litigation and helped revive the market after financial troubles.

But supporters of Thursday’s bill said the 2022 law was tilted too far toward insurers and led to homeowners being unable to fight companies over wrongfully denied claims.

“At some point, we as a Legislature have got to make sure that we’re standing up for the people of Florida and maybe not the insurance companies of Florida,” Rep. Michele Rayner, D-St. Petersburg, said.

Opponents of the bill, however, said the law has worked in helping attract carriers to Florida and holding down rates. They warned that the bill would undo the progress.

“Kudos to you. It (the law) is working,” Katelyn Ferry, who represented the business-backed Florida Justice Reform Institute, told the House panel. “Why are we fixing it?”

Attorney fees have long been a major battleground in insurance debates. Before the 2022 law, Florida had what is often described as a “one-way” attorney fee system for property insurance. Essentially, that meant If a policyholder successfully sued an insurer over a wrongfully denied claim, the insurer would be responsible for paying the policyholder’s attorney fees.

Supporters of the fee system said it ensured consumers would be able to go to court to challenge deep-pocketed insurers. But opponents said it provided an incentive for plaintiffs’ attorneys to flood the courts with lawsuits and drained money from the industry..

With carriers dropping large numbers of policies, increasing rates and, in some cases, going insolvent, lawmakers in 2022 eliminated the one-way fee system for property insurance. They followed in 2023 by passing legal changes that more broadly helped insurers.

The insurance industry and other supporters of eliminating one-way attorney fees, including Gov. Ron DeSantis, argue the change has helped the property insurance market bounce back.

The House bill would shift to what sponsor Hillary Cassel, R-Dania Beach, described as a “loser pays” fee system. If a policyholder sues an insurer, the judge would award attorney fees to whichever side prevails in the case.

Cassel said the approach would provide an incentive to settle disputes, while restoring “balance.”

“This bill does not bring us backward,” said Cassel, an attorney who represents consumers in cases against insurance companies. “But this bill does bring us balance. We are currently in an unbalanced, unjust system.”

The bill drew support from the groups such as the Florida Justice Association, which represents plaintiffs’ attorneys. It faced opposition from groups such as Associated Industries of Florida, the Florida Chamber of Commerce, the Florida Insurance Council and the Personal Insurance Federation of Florida, which represents national insurers.

“We believe this bill points us back in the direction of less options and a more unstable market by being less focused on the true needs of policyholders, whether they be homeowners or businesses, and more focused on the needs of the lawyers,” Associated Industries of Florida lobbyist Adam Basford said.

Rep. Susan Plasencia, R-Orlando, cast the dissenting vote Thursday. The bill would need to clear two more House panels before it could go to the full House. Sen. Jonathan Martin, R-Fort Myers, has filed a similar bill (SB 426) in the Senate.

Insurance Attorney Fee Fight Refueled

https://www.fljustice.org/wp-content/uploads/2024/11/fjri-news.jpg 800 800 Becky Lannon https://www.fljustice.org/wp-content/uploads/2024/11/Florida-Justice-Reform-Institute.jpg Becky Lannon2025-03-14 19:03:382025-05-18 19:18:37Insurance Attorney Fee Fight Refueled
Florida Justice Reform Institute

DeSantis Picks Appellate Judge for Supreme Court

January 9, 2019/in Tallahasssee Reports

 

Tallahassee Reports

              DeSantis Picks Appellate Judge for Supreme Court

By The News Service of Florida on January 9, 2019

Lagoa

By Dara Kam, The News Service of Florida

TALLAHASSEE — In one of his first acts after taking office, Gov. Ron DeSantis on Wednesday made a historic appointment to the Florida Supreme Court, naming appellate Judge Barbara Lagoa as the high court’s first Cuban-American female justice.

DeSantis’ selection of Lagoa, the daughter of Cuban émigrés, was the first of three Supreme Court appointments the new governor will make, following the mandatory retirement of three justices who comprised what had been the court’s more liberal-leaning bloc.

Lagoa’s addition will cement a conservative majority that will include Chief Justice Charles Canady and justices Alan Lawson and Ricky Polston, all of whom Lagoa cited as references in her application for the post. It also will keep DeSantis’ pledge to purge the Supreme Court of “activist” jurists.

DeSantis, a Harvard Law School graduate who served as a judge advocate in the Navy and who was sworn into office on Tuesday, hailed Lagoa as “the essence of what a judge should be.”

Lagoa, 51, grew up in Miami and attended New York’s Columbia Law School, where she edited the prestigious law review. A onetime federal prosecutor in Florida’s Southern District, Lagoa had experience in criminal and civil litigation before former Gov. Jeb Bush appointed her to the 3rd District Court of Appeal in 2006, where she has served for more than 12 years.

Recently, Lagoa has been chief judge of the appellate court, which hears cases from Miami-Dade and Monroe counties.

In addition to her legal bona fides, Lagoa has a “great personal history,” DeSantis said, pointing to the location of Wednesday’s announcement, the Freedom Tower in Miami, as symbolic of his choice.

“I thought it was fitting, given that her parents came to Florida as Cuban exiles,” DeSantis, 40, said. “She understands the rule of law, how important that is to a society.”

Because of Lagoa’s family’s history, “she understands that, in Cuba, the rule of law doesn’t mean anything,” DeSantis said.

“The Cuban people do not know what laws apply to them or whether they will receive a fair trial after arbitrarily being accused of political crimes,” he said.

In her remarks, Lagoa, accompanied by her parents, husband and three daughters, left little doubt that she will fulfill DeSantis’ expectations.

The Florida Supreme Court is “tasked with the protections of the people’s liberties under law,” Lagoa said.

“And in that regard, I am particularly mindful of the fact that, under our constitutional system, it is for the Legislature and not the courts to make the law. It is the role of judges to apply, not to alter, the work of the people’s representatives. And it is the role of judges to interpret our Constitution and statutes as they are written,” she said.

Lagoa contrasted the experiences of people in her parents’ homeland with those of people in their adopted country and indicated that helped shape her legal views.

“In the country my parents fled, the whim of a single individual could mean the difference between food or hunger, liberty or prison, life or death. In our great country and our great state, we are governed by the rule of law, the consistent and equal application of the law to all litigations regardless of a judge’s personal preferences,” she said. “Unlike the country my parents fled, we are a nation of laws, not of men.”

DeSantis’ replacements for the three justices who were required to retire this week — R. Fred Lewis, Barbara Pariente and Peggy Quince — will reshape a court that for years has been a thorn in the side to the Republican-dominated Legislature and former Gov. Rick Scott.

Over the past decade, the court overturned a number of policies important to GOP leaders, wrangled with lawmakers over congressional and Senate maps and, following a U.S. Supreme Court ruling, ordered the Legislature to require unanimous jury recommendations for the death penalty to be imposed.

During his inaugural speech Tuesday, DeSantis blasted the court for expanding its powers “beyond constitutional bounds” and substituting “legislative will for dispassionate legal judgment.”

“To my fellow Floridians, I say to you: judicial activism ends, right here and right now,” DeSantis said during the speech. “I will only appoint judges who understand the proper role of the courts is to apply the law and Constitution as written, not to legislate from the bench. The Constitution, not the judiciary, is supreme.”

Senate President Bill Galvano, a Bradenton Republican who played a major role in drafting legislative districts rejected by the Supreme Court, echoed DeSantis’ critique of the court while praising the governor’s choice.

“I share the governor’s concern that in recent years the power of the judicial branch has extended beyond its limited constitutional responsibility, in many cases eroding the authority of the legislative branch. I believe democracy is at its best when each branch of government exercises both authority and restraint at the appropriate time. That concept was certainly at the heart of … many of the comments we heard from the governor yesterday, and echoed again this morning with the appointment of Justice Lagoa,” Galvano said in a statement Wednesday.

Lagoa’s selection also drew praise from the business-backed Florida Justice Reform Institute, which, in a statement, called DeSantis’ appointment “the first step towards fulfilling his promise to appoint judges who will interpret the law and not legislate from the bench.”

Speaking at the Freedom Tower, Lagoa recounted her life as an only child growing up in Hialeah, where she “rode my bike” and “roller-skated down the streets and the sidewalks … under the watchful eye of my grandmother while my parents worked long hours.”

“Mami and papi, your hard work, your belief in the value of education, your love for what this country represents, your unparalleled work ethic, have made me what I am today,” Lagoa said.

DeSantis’ office said Lagoa will be the first Hispanic woman to serve on the Supreme Court. Former Justice Rosemary Barkett was born in Mexico, but because her parents were of Syrian descent, she has credited former justice Raoul Cantero with being Florida’s first justice of Hispanic descent. Cantero and current Justice Jorge Labarga are Cuban-Americans.

Lagoa will serve as a role model to young women, DeSantis, who was also accompanied by Lt. Gov. Jeanette Nuñez on Wednesday.

The governor recalled that, when he announced Nuñez as his running-mate last year, he said “Jeanette’s life, what she’s done, was really an inspiration to a lot of young women.”

“I think the same of Barbara,” he said Wednesday. “I think people look at what she’s done, as a professional, as a wife, as a mother. This is really the way it should be done. I’m real excited about being able to put her on the court.”

https://tallahasseereports.com/2019/01/09/desantis-picks-appellate-judge-for-supreme-court/ 

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 Tech2019-01-09 15:56:432024-11-25 21:58:23DeSantis Picks Appellate Judge for Supreme Court
Florida Justice Reform Institute

No-fault insurer prevails in attempted class action over Medicare reimbursement

September 26, 2018/in Capitol News Service, CQ Roll Call, Daily Commerical, FlaNewsOnline, Florida Politics, Florida Trend, Florida Watchdog, Orlando Political Observer, Roundtable Politics, Tallahasssee Reports, wctv.tv

 

Florida Politics

No-fault insurer prevails in attempted class action over Medicare reimbursement

Michael Moline – September 26, 2018

A state appeals court has rejected a class action filed by a Medicare Advantage organization seeking double reimbursements for its costs of providing care that should have been covered by a no-fault auto insurer.

In a unanimous ruling, the 3rd District Court of Appeal said such organizations would have to establish each claim separately against Ocean Harbor Casualty Insurance.

The court overruled Miami-Dade Circuit Judge Samantha Ruiz-Cohen, who had certified a class potentially including 37 Florida Medicare Advantage organizations, or MROs.

The lead plaintiff was an entity called MSPA, an assignee of the defunct MRO Florida Healthcare Plus Inc.

“Proof that certain medical bills paid by MSPA’s alleged assignor should have been paid by Ocean Harbor as a primary payer will not establish that other medical bills paid by a different MAO should also have been paid by Ocean Harbor as a primary payer,” Judge Thomas Logue wrote.

“To the contrary, proof to establish liability will necessarily devolve into a series of mini-trials under Florida no-fault law … which precludes a finding of predominance and renders this case inappropriate for class action treatment,” Logue wrote.

“Accordingly, we reverse the provisions of the certification order under review in conflict with this opinion.”

MAOs are private companies that contract with Medicare to provide coverage at a flat rate per enrollee. They profit to the degree they provide the required coverage for less than the flat rate.

The coverage is meant to be secondary to other, primary, coverage, including personal injury protection policies.

Miami plaintiffs’ attorney John Ruiz argued that he could establish the common claims necessary to sustain a class action using an algorithm that analyzes police reports of accidents and other records that Ocean Harbor must report under state and federal law.

He argued that Ocean Harbor’s obligation to pay was automatic once his client established that it had made payments reimbursable by the insurer.

The 3rd DCA disagreed.

“We reject the notion that MSPA claims reimbursement rights are not governed by Florida law relating to the recovery of benefits under a PIP policy, and are therefore automatic,” Logue wrote.

“Instead, MSPA must demonstrate that, in addition to any requirements of federal law, Ocean Harbor was required to make the payment in the first instance under Florida no-fault law for each reimbursement it claims.”

William Large, president of the tort-reformer Florida Justice Reform Institute, praised the outcome.

“The plaintiff has filed dozens of copycat cases against Florida insurers raising the same claims — this case was simply the first to reach the class certification stage,” Large said in a written statement.

“In certifying the class, the trial court failed to rigorously apply Florida’s class action certification requirements, which are necessary to protect defendants’ due process rights. The 3rd DCA recognized this overreach and ruled appropriately.”

http://floridapolitics.com/archives/275876-no-fault-insurer-prevails-in-attempted-class-action-over-medicare-reimbursement 

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 Tech2018-09-26 15:58:282024-11-25 22:22:42No-fault insurer prevails in attempted class action over Medicare reimbursement
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