– Florida has replaced its system of pure comparative negligence with a modified comparative negligence regime.
– The statute of limitations for general negligence actions has been shortened from four years to two years.
– The standard for bad-faith insurance claims has been amended.
– The bill outlines the evidence that a factfinder should consider when calculating medical damages in personal injury or wrongful death actions.
– New disclosures about letters of protection used to obtain medical treatment are now required.
– The use of contingency-fee multipliers when calculating attorneys’ fees has been limited.
– Joint and several liability has been replaced with comparative negligence in certain negligent security cases. – Florida has replaced its pure comparative negligence system with a modified comparative negligence system, meaning that plaintiffs can only recover from defendants if their own share of responsibility is 50 percent or less.
– The statute of limitations for filing a negligence action in Florida has been reduced from four years to two years under the new law.
– Under the modified comparative negligence system, personal injury and wrongful death claims arising from medical negligence are still subject to the pure comparative negligence standard.
– HB 837 clarifies that negligence alone is not enough to constitute insurance bad faith and imposes a duty on insureds and their representatives to act in good faith when dealing with insurance claims. 1. HB 837 provides a safe harbor from bad-faith liability for liability insurers if they offer the policy limits or the amount demanded by the claimant within 90 days of receiving notice of a claim supported by evidence.
2. The existence of this safe harbor cannot be used as evidence of bad faith by the insurer. The statute of limitations is tolled if payment is still refused after 90 days, allowing the plaintiff to bring a claim.
3. The law also creates safe harbors for insurers facing competing claims from multiple third parties exceeding policy limits, allowing them to avoid bad-faith liability through interpleader or arbitration procedures.
4. Sections of the Florida Statutes allowing insureds to recover attorneys’ fees in insurance coverage disputes are repealed. Insureds, omnibus insureds and named beneficiaries can only recover attorneys’ fees in actions for declaratory relief after total denial of coverage, with exceptions for residential or commercial property insurance policies. 1. Plaintiffs using a letter of protection (LOP) must disclose a copy of the LOP, all billings for medical expenses, the name of any third party receiving payment rights, and any healthcare coverage they had at the time of treatment.
2. The new law voids attorney-client privilege over communications relevant to a lawyer’s referral of a client for treatment under a LOP.
3. Factfinders must consider evidence of amount already paid for past medical treatment and evidence of damages for medical treatment not yet paid for, based on whether the plaintiff has private insurance, Medicare or Medicaid, or used a LOP.
4. The factfinder must also consider evidence of reasonable amounts billed to the claimant for medically necessary treatment or services. – The bill limits the amount of medical damages awarded to the plaintiff to the actual amount paid to the healthcare provider, the amount owed at the time of trial, and the charges for future medical treatment.
– The bill changes the method for calculating attorney fees by making the lodestar amount the presumptive fee, with exceptions only in rare and exceptional circumstances.
– The bill creates a presumption against liability for negligent security claims on multifamily residential properties where certain security measures have been implemented. It also replaces joint and several liability with comparative negligence in certain negligent security lawsuits. – HB 837 became effective immediately, but some changes only apply to new causes of action filed after the effective date.
– The statute of limitations for negligence actions will only apply to causes of action that occur after the effective date.
– Changes to insurance contracts will not affect rights under contracts issued before the effective date, and the changes will apply to contracts issued or renewed after the effective date.
– For more information about the changes brought by HB 837, readers can contact the authors of the alert.
– The information in the alert is for general education and should not be used as the sole source of information for legal problems. It is not a substitute for legal advice. Laws in different jurisdictions are constantly changing, and this information is not meant to create an attorney-client relationship. If readers have specific questions, they are urged to consult the authors of the publication or other legal counsel.
https://www.hklaw.com/en/insights/publications/2023/03/florida-enacts-major-tort-reform-and-bad-faith-insurance-claim
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