As an attorney who has spent years navigating the complexities of Florida law, I’ve observed how the system can sometimes fall short of delivering true justice. Unfortunately, a law passed in 2023 by the Florida legislature, known as House Bill 837, is no exception. Now, a little more than a year later, I’d like to reflect on how this may have represented a significant step in the wrong direction, as far as consumers should be concerned.
What was House Bill 837?
In March 2023, the Florida legislature passed House Bill 837, a comprehensive “tort reform” package hailed by proponents as the answer to skyrocketing insurance premiums. The legislation, steeped in the rhetoric of curbing “frivolous lawsuits,” targeted various aspects of civil litigation, including limitations on non-economic damages, modifications to the joint and several liability standard, and restrictions on attorney fees.
This legislation dramatically altered the landscape of civil remedies in a way that disproportionately benefits large corporations and insurance companies at the expense of everyday Floridians. In my view, “tort reform” is often little more than pro-insurance industry propaganda designed to shield these powerful entities from accountability and this is no different. One year later, a crucial question lingers: did our elected representatives gamble away Florida citizens’ access to courts, in the name illusory cost savings, simply to favor the insurance industry?
Here’s a breakdown of how HB 837 undermined consumer rights and tilted the scales of justice against individuals:
- A Narrowed Window for Justice: The statute of limitations for negligence claims was slashed, from four years to a mere two years. This drastic reduction means that those harmed by negligence now face a much tighter deadline to take legal action. This change alone will likely prevent many legitimate claims from ever being heard, simply because victims weren’t able to navigate the legal system fast enough.
- “Bad Faith” Claims Gutted: The new legislation erects substantial barriers to pursuing bad faith claims against insurers. Insurance companies now have a mere 90 days to offer a settlement equal to the policy limits, or the amount demanded by the claimant after receiving notice of a claim accompanied by sufficient evidence. If they do so, they are effectively shielded from bad faith litigation. This provides them with a considerable advantage and removes their incentive to settle fairly. The law also introduces a “good faith” requirement on the part of the insured, allowing a trier of fact to reduce the damages if an insured has not acted in good faith. This effectively shifts the burden of proof and creates another hurdle for policyholders seeking fair treatment.
- Medical Expense Recovery Is Severely Limited: The law imposes significant restrictions on the amount of damages you can recover for medical expenses in personal injury cases. It introduces a complex system for calculating these damages, often tying recovery to what insurance would have paid, regardless of the actual amount billed. This is particularly problematic when a victim has received treatment through a “letter of protection,” a tool often used by those without health insurance. This means you might be unable to recover the full cost of your medical care, even if it was necessary for your recovery.
- Comparative Negligence Now Punishes the Injured: Florida’s existing comparative negligence system used to ensure that even if you were partly responsible for an accident, you could still recover some compensation. Now, this law stipulates that if you are found to be more than 50% at fault, you will not be able to recover any damages. This is a radical departure that punishes the injured rather than ensures a fair distribution of responsibility.
- Attorney Fees Capped: The new law introduces a presumption that a “lodestar” fee is sufficient for attorneys. This means that it will be much more difficult for lawyers to recover appropriate compensation for their work on complex cases, making it less attractive to take on cases for individuals against large corporations. This shift limits access to justice, effectively disadvantaging those who cannot afford to pay their attorney out of pocket. Additionally, while attorney fees may be awarded in some cases, these rights can’t be transferred.
- Presumption Against Liability for Multifamily Housing: The law creates a presumption against liability for owners of multifamily residential properties if they implement certain security measures. While safety is essential, this provision shifts the burden away from property owners and makes it more difficult for victims of crime on these properties to recover damages.
While proponents of HB 837 argued that these changes would reduce frivolous lawsuits and lower insurance premiums, studies have consistently shown a weak correlation between lawsuit frequency and insurance costs. Furthermore, research suggests that similar “tort reform” laws in other states have had minimal to no impact on premiums, particularly for fully insured plans. I link to a wonderful article at the bottom of this post that goes into detail on various studies and the lack of correlation between “tort reform” and reducing insurance costs. The potential consequences for injured Floridians, however, are significant and chilling.
What Does This Mean for You?
These changes are not mere legal technicalities; they represent a significant erosion of the rights of Florida consumers. As a result of these changes:
- Your legal options are now more limited.
- You have less time to pursue claims when you are injured.
- Insurance companies have even less incentive to treat you fairly.
- You may struggle to recover the full value of your losses, especially for medical care.
This isn’t just about the law; it’s about access to justice. It’s about ensuring that those who are harmed by negligence or bad faith actions have a fair chance to seek redress. Any delay in injury case litigation creates a distinct advantage for the defense. The reason lies in the way plaintiffs’ attorneys are typically compensated: on a contingency basis meaning that they only receive payment if they secure a settlement or win a verdict. As a case drags on, the attorney’s investment of time and resources increases exponentially, with no guarantee of compensation.
Therefore, any regulatory changes that place additional obstacles between an injury and compensation for that injury, create a chilling effect, discouraging attorneys from taking on complex or potentially lengthy cases, even if the claimant has a strong case. Ultimately, this dynamic severely limits a claimant’s access to justice, effectively shutting the courthouse doors for many injured individuals. And while the injured individual may not be you, today, it certainly can be you or any of your loved ones in the future.
House Bill 837 raises serious concerns about Florida’s future, with the scales of justice being tipped heavily in favor of powerful corporations.
What Can You Do?
It’s crucial for Floridians to stay informed about these changes and engage with their representatives. When you hear phrases such as “tort reform” and “frivolous lawsuit”, you should look deeper to see if the pundit has been campaign funded by the insurance industry. Contact your state legislators and express your concerns about any litigation that limits your constitutional rights. Demand accountability from the insurance industry and advocate for policies that protect consumers’ rights.
Important note: The changes described in this post are based on the text of HB 837 and are for general informational purposes only. This is a complex and rapidly changing situation. Your specific situation and circumstances should always be reviewed by a qualified attorney.
Support the Fight for Fairness
The changes discussed in this post highlight the ongoing need for strong advocacy on behalf of Florida consumers. The deck is being stacked against Florida consumers, but we don’t have to accept it. Whether you’re an individual concerned about your rights or a legal professional dedicated to justice, you can make a difference. The Florida Justice Association is on the front lines, working tirelessly to protect access to the courts and ensure fairness for all. You can learn more about their efforts and how to support or join the fight at the FJA website.
