Should insurers pay the customers' legal fees? Florida Bill reopens the debate.

TallaHassee – More than two years after the legislation against lawsuits against real estate insurance companies had stuck, a House -House panel was reopened on Thursday a big debate about legal fees, as homeowners and insurers fight for claims.

The subcommittee of the House Civil Justice & Claims voted 16: 1 for the approval of a legislative template (HB 1551), which revised a law of 2022, which prevented the owner insurer from paying the lawyers' fees. The insurance industry argues that the law has reduced costly legal disputes and revived the market according to financial problems.

However, followers of the legislation on Thursday said that the law was too far to insurers from 2022 and led to the fact that homeowners were unable to fight companies against incorrectly refused claims.

“At some point, as legislators, we have to ensure that we are committed to the people in Florida and not for the insurance companies Florida,” Rep. Michele Rayner, D-St. Petersburg, said.

However, opponents of the legislation said that the law had contributed to moving airlines to Florida and keeping the tariffs. They warned that the invoice would undo progress.

“A great praise to you. It (the law) works, ”said Katelyn Ferry, who represented the Business Backed Florida Justice Reform Institute, the House Panel. “Why do we repair it?”

Legal fees have long been a large battlefield in insurance debates. Before the Law of 2022, Florida had what is often referred to as a “disposable” lawyer fee for property insurance. This essentially meant that if a policyholder was successfully sued an insurer due to an wrongly refused claim, the insurer would be responsible for paying the policyholder's attorney fees.

Followers of the fee system said that consumers were able to go to court to take a deep into their hands. However, the opponents said that it provided an incentive for the plaintiff's lawyers to flood the dishes with complaints and to dismiss money from the industry.

In the airlines that drop a large number of guidelines, increased tariffs and in some cases it was insolvent, the legislator removed the disposable system for real estate insurance in 2022. They followed in 2023 by adopting legal changes that helped the insurers and the whole.

The insurance industry and other supporters of the elimination of disposable lawyers, including governor Ron Desantis, argue that the change has helped the real estate insurance market to withdraw.

The house bill would be described as “Loser-Pays” charge system for what the sponsor Hillary Cassel, R-Dania Beach, is described. If a policyholder sues an insurer, the judge would award the legal fees to the page prevailing in this case.

Cassel said the approach would give an incentive to accommodate disputes and at the same time restore the “balance”.

“This calculation does not bring us backwards,” said Cassel, a lawyer who represents consumers in cases against insurance companies. “But this calculation brings us the balance. We are currently in an unbalanced, unjust system. “

The bill was supported by groups such as the Florida Justice Association, which represents the plaintiffs' lawyers. It was confronted against groups such as the Associated Industries of Florida, the Florida Chamber of Commerce, the Florida Insurance Council and the Personality Insurance Association of Florida, which National insurers represent.

“We believe that this draft law refers to fewer options and a more unstable market by less focusing on the true needs of the policyholder, regardless of whether they are homeowners or companies, and more focuses on the needs of lawyers,” said Adam Basford, Associated Industries of Florida Lobbyist Adam Basford.

MP Susan Plasencia, R-Orlando, released the different vote on Thursday. The invoice would have to delete two more house cladding before it could go into the full house. Senator Jonathan Martin, R-Fort Myers, submitted a similar draft law (SB 426) in the Senate.

By Jim Saunders, news service from Florida