Florida Senate refuses to back proposal on attorney fees in insurance disputes

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The Florida Senate on Wednesday refused to go along with a House proposal to revamp laws about attorney fees in insurance disputes and evidence that can be presented in determining medical damages in personal-injury and wrongful-death lawsuits.

The Florida Senate on Wednesday refused to go along with a House proposal to revamp laws about attorney fees in insurance disputes and evidence that can be presented in determining medical damages in personal-injury and wrongful-death lawsuits.The House on Friday added the proposal to a Senate bill (SB 832) that would provide a legal defense to phosphate companies for pollution at former mine sites.But the Senate on Wednesday rejected the House’s addition.

The bill with the phosphate issue will go back to the House.Business groups have fought the House proposal, which came after lawmakers in 2022 and 2023 passed laws aimed at helping shield insurers and other businesses from costly lawsuits.Related ArticlesHouse resurrects bid to restore attorney fees in insurance disputesAs an example of the issues in the House proposal, lawmakers in 2022 passed a law that shielded property insurers from paying customers’ attorney fees.



Before that 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.The 2022 law eliminated one-way fees, making each side responsible for their own fees.

The House wants to shift to what is sometimes 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.Supporters of the proposal contend that the 2022 law was tilted too far toward insurers over policyholders.

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