Protecting Consumers from Lawsuit Abuse
ADDRESSING LAWSUIT ABUSE THAT HURTS FLORIDA FAMILIES
Governor Ron DeSantis and the Florida Legislature have taken significant steps to improve the state’s bottom-five legal climate through the passage of HB 837 in 2023, incorporating best practices from across the nation into Florida’s civil justice system. While these reforms have made substantial progress, the unchecked proliferation of third-party litigation financing could incentivize the last thing our state needs to continue its economic momentum – more litigation. Third party litigation financing (TPLF) is a growing industry where hedge funds and investors fund litigation in exchange for a percentage of the settlement or judgement. This creates an environment susceptible to exploitation by foreign and domestic financiers at the expense of Florida consumers.
FIXING FLORIDA’S PROPERTY INSURANCE CRISIS
Governor Ron DeSantis and the Florida Legislature took historic steps in late 2022 to stabilize the state’s property insurance market, protect consumers and eliminate perverse incentives to sue that have driven Florida’s homeowners’ insurance litigation frenzy. There have been several positive signs the reforms are working, but it will take time for the litigation caused by a small group of billboard trial lawyers to work its way through the judicial system. Rate relief is on the way, but for the reforms to take hold, the legislature and other state leaders must stay vigilant for new lawsuit scams and loopholes that drive up the cost of our insurance coverage.
Florida’s consumers are forced to pay thousands of dollars more each year for everything from toothpaste to insurance coverage due to lawsuit abuse schemes that drive up costs for everyone. Protecting consumers from unnecessary high costs and “lawsuit abuse taxes” due to the state’s treacherous litigation environment – and advocating for sound public policy that puts consumers first – is the mission of the Consumer Protection Coalition.
PUTTING CONSUMERS FIRST IN ANY PIP REFORM EFFORT
Florida’s no-fault/PIP auto insurance system has for years been rife with fraud and abuse that has spawned a cottage industry of questionable pain clinics and drives up the cost of coverage for the state’s motorists. Florida legislators must assure that any efforts to replace PIP produce real savings for consumers.