Last year, Governor Ron DeSantis signed HB 837 into law, making big changes to Florida’s negligence liability system and insurance claim rules. These changes could mean less protection for policyholders. Key changes include moving from a pure comparative negligence system to a modified one, shortening the time you must file a negligence lawsuit, and changing the rules for bad-faith insurance claims.
If you’ve been injured and your insurance company is delaying your claim, you need a skilled attorney to help you. The attorneys at Anthony-Smith Law know how insurance companies use these new laws to backdate cancellations, delay claims, and deny claims. If the insurance company asks you to sign anything about canceling your policy, don’t do it. Instead, contact Anthony-Smith Law to fight the cancellation. Consultations are free, and you don’t pay unless you win, then the insurance company covers your legal fees. Call for help now – 321-900-HELP (321-900-4357).
Key Changes to Florida’s Negligence Liability System and Statute of Limitations
Negligence Liability System
Florida’s recent legislative changes regarding negligence liability and statute of limitations can significantly impact insured individuals. These changes, particularly the shift to a modified comparative negligence system and the shortened statute of limitations, potentially reduce the protection available to policyholders.
Under the new system, policyholders may find it more challenging to recover damages in certain situations, especially if they are found to be more than 50% at fault for an incident. This shift could lead to increased instances of insurance companies denying claims or offering lower settlements, citing the modified comparative negligence standard.
Additionally, the shortened statute of limitations means that policyholders have less time to file negligence lawsuits. This compressed timeframe could result in policyholders missing the deadline to file a claim, potentially leaving them without recourse for their damages.
Overall, these changes may create a scenario where insurance companies are more likely to engage in bad-faith practices, such as delaying or denying valid claims. It’s crucial for insured individuals to be aware of these changes and seek legal representation if they encounter difficulties with their insurance claims.
Negligence Liability System:
From Pure to Modified Comparative Negligence:
- Previously: Plaintiffs could recover damages proportional to the defendants’ percentage of fault, regardless of the plaintiff’s own level of responsibility.
- Now: Plaintiffs can recover damages only if their share of fault is 50% or less. If the plaintiff is more than 50% at fault, they cannot recover any damages.
Statute of Limitations:
- Previously: Plaintiffs had four years to file a negligence lawsuit.
- Now: Plaintiffs must file within two years.
- Exception: Medical negligence claims retain the pure comparative negligence standard and the two-year statute of limitations.
Florida’s changes to bad-faith insurance claims have raised the bar for policyholders seeking redress. Negligence alone is no longer enough to establish bad faith; insured individuals and their representatives must now act in good faith during claims processes. Insurers can avoid bad-faith liability by promptly tendering policy limits or the demanded amount within 90 days (about 3 months) of receiving sufficient evidence. Additionally, the repeal of certain sections has limited the circumstances under which insureds can recover attorney fees, now only applicable in declaratory actions where coverage has been totally denied. These changes could make it more challenging for policyholders to hold insurers accountable for unfair practices.
Standard for Bad Faith:
- Negligence alone is no longer enough to claim bad faith.
- Insured individuals and their representatives must act honestly during the claims process. If an attorney is claiming you misrepresented yourself or acted dishonestly, contact Anthony-Smith Law right away. We don’t tolerate bad faith behaviors from insurance companies. We will fight for your rights.
- Factfinders can consider any bad-faith behavior by the insured when deciding on damages.
Safe Harbor Provision:
- Insurers can avoid being accused of bad faith by paying policy limits or the demanded amount within 90 days of getting enough evidence.
- This provision also applies if an insurer faces multiple claims exceeding policy limits, allowing them to use interpleader or arbitration to avoid being accused of bad faith.
Attorney Fees:
- Certain sections that allowed insured individuals to recover attorney fees in coverage disputes have been repealed. Rest assured, Anthony-Smith Law knows the ins-and-outs of these policies. We don’t charge unless we win your case, and in nearly all cases the insurance company was ordered to pay attorney fees for our clients.
- Insured individuals can only recover attorney fees in cases where coverage has been completely denied, excluding property insurance disputes.
Understanding Letters of Protection (LOP) Disclosures in Florida
Disclosure Requirements:
Plaintiffs involved in legal proceedings and using Letters of Protection (LOP) must disclose specific information. This includes providing details about the LOP itself, billing information, any third-party rights to payment for services, existing healthcare coverage, and sources of referrals for treatment.
Moreover, Florida law voids attorney-client privilege concerning communications related to treatment referrals when LOPs are involved. This means that certain communications that would typically be protected may be subject to disclosure in LOP-related matters.
Understanding Evidence for Medical Damages in Florida
Factfinder Considerations:
When determining medical damages in personal injury or wrongful death cases, the factfinder must consider several factors. This includes evidence of amounts already paid for medical treatment, evidence based on the plaintiff’s insurance type or usage of Letters of Protection (LOP) for unpaid medical services, and a framework for estimating future medical costs.
Damage Calculation:
Under Florida law, medical damages awards are capped. They cannot exceed the total amount actually paid or owed for medical treatment, plus reasonable future treatment costs. This calculation method aims to ensure that medical damages are based on actual expenses and reasonable projections for future care.
Understanding Contingency-Fee Multipliers and Premises Liability in Florida
Lodestar Method:
Florida now strongly presumes that the lodestar fee (the attorney’s reasonable hourly rate multiplied by the number of hours worked) is sufficient for calculating attorneys’ fees. Contingency-fee multipliers, which adjust the lodestar amount based on certain factors, are now only allowed in rare and exceptional circumstances where competent counsel cannot otherwise be retained.
Premises Liability and Negligent Security Claims:
Presumption Against Liability:
- Owners/operators of multifamily residential properties that implement specified security measures are now presumed to be not liable for negligent security claims.
Comparative Negligence:
- In cases involving third-party criminal acts on commercial or real properties, joint and several liability has been replaced with comparative negligence, shifting the burden of responsibility to the negligent parties based on their degree of fault.
The reforms brought about by HB 837 in Florida have already begun reshaping the legal landscape. Effective immediately upon signing, these changes apply to causes of action filed after the effective date. It’s important to note that while these reforms do not impair existing insurance contract rights, they do apply to new or renewed contracts post-effective date. Overall, these reforms mark a significant shift in how negligence and insurance claims are handled in Florida, emphasizing the need for policyholders and legal professionals to stay informed and adapt to the evolving legal environment.
