Florida passes tort reform
On March 24, 2023, Florida Governor Ron DeSantis signed House Bill 837, "Civil Remedies," into law. The bill contains significant tort reform measures that will transform the landscape of civil litigation in Florida. The changes will apply to causes of action that accrue after March 24, 2023. Prior to the bill becoming law, plaintiffs' firms had filed around 100,000 lawsuits, which represents about 77% of the total cases filed since January 1, 2023.
Here are some of the key changes brought about by HB 837:
NEW MODIFIED COMPARATIVE NEGLIGENCE STANDARD: Florida's standard of "pure" comparative negligence has been changed to a "modified" comparative negligence standard, aligning Florida with most other states. Under this new standard, if a plaintiff is more negligent than the defendant, the plaintiff cannot recover damages. This is likely to reduce the number of cases in which the plaintiff was the primary cause of their own injury.
TWO-YEAR STATUTE OF LIMITATIONS FOR GENERAL NEGLIGENCE CLAIMS: The statute of limitations for general negligence claims has been reduced from four years to two years. This may prompt plaintiffs to file lawsuits earlier, which could lead to earlier settlements and resolution of claims.
ADMISSIBILITY OF EVIDENCE IN PAST AND FUTURE MEDICAL EXPENSES: Evidence that plaintiffs can introduce to prove past and future medical expenses has been limited. For past medical bills that have been paid, evidence of the amount actually paid is admissible, regardless of the source of payment. For unpaid past medical bills and future medical bills, the amount that can be recovered is limited to reasonable and necessary expenses.
LETTERS OF PROTECTION AND REFERRALS MUST BE DISCLOSED: If a plaintiff treats under a letter of protection, the letter of protection must be disclosed, as must all bills for medical expenses. Whether the plaintiff was referred for treatment under the letter of protection must also be disclosed, along with who referred the plaintiff.
BAD FAITH - NEW DUTY OF INSUREDS AND IMPACT ON DAMAGES: In every bad faith action in Florida, the insured, claimant, and/or their representative have a duty to act in good faith in providing information, making demands, setting deadlines, and attempting to settle the claim. The trier of fact may consider whether the insured, claimant, and/or their representative acted in good faith and may reasonably reduce the amount of damages if they did not.
