A major legislative package, HB 837, aimed at limiting lawsuits against insurance companies and businesses has been passed in the House with an 80-31 vote. Filed by Reps. Tommy Gregory and Tom Fabricio, the bill has sparked hope that insurance rates will be lowered, although there is no mandate for this in the bill itself. HB 837 introduces significant changes to the state's legal system, which has been widely supported by business interests.

The bill seeks to establish three principles for litigation: each party should pay its own attorney fees, damages should be paid by the person causing harm rather than those with the deepest pockets, and trust should be placed in the juries. It also encourages transparency by requiring plaintiffs to provide evidence of the actual medical costs they are paying, minus any discounts or waivers. However, the bill does not cap damages, even punitive damages.

This legislation is a priority for Gov. Ron DeSantis, House Speaker Paul Renner, and Senate President Kathleen Passidomo, and has been fast-tracked through the legislative process. SB 236, a companion bill filed by Sen. Travis Hutson, has cleared all committees of reference and could be considered by the full Senate no later than this week.

Business interests have applauded the passing of the legislation, as it aims to put an end to what they call "frivolous" lawsuits filed for personal gain. However, critics argue that the bill's limits on medical payouts could discourage doctors from treating injured people on the basis of future insurance recovery.

As we hear from QPWB Miami-based Partner, Rebecca V. Aroca last week, HB 837 also changes the information juries can consider regarding past and future medical bills, and allows for separate court proceedings to divide payouts between policyholders and any third parties injured in an accident. The bill does not ban Letters of Protection (LOPs) but allows juries to consider contracted commercial reimbursement rates for the costs of care, as well as Medicare and Medicaid rates when determining future medical expenses.

Despite the potential benefits of the bill, there is no requirement for insurance companies to reduce rates as a result of these changes. This has led to criticism from trial attorneys and their clients, who argue that the legislation goes too far and will result in a windfall for insurance companies.

NFIB Executive Director Bill Herrle has stated that small business owners have been "clamoring for" these changes, as the cost of defending against nuisance lawsuits can be devastating for small businesses. While HB 837 won't prevent anyone from going to court, it aims to bring balance back into the legal system after years of favoring plaintiffs' attorneys.