Florida House Panel Approves Insurance Attorney Fee Bill
A Florida House subcommittee has advanced legislation that could reshape attorney fee structures in insurance disputes, sparking debate over consumer protections and the stability of the state’s insurance market. The House Civil Justice and Claims Subcommittee voted 16-1 in favor of HB 1551, a bill introduced by Representative Hillary Cassel, an insurance attorney from Broward County.
The legislation proposes a shift in the financial burden of legal battles in insurance disagreements, potentially reversing recent changes. The state has grappled with a high volume of insurance-related lawsuits, particularly regarding roof damage and water losses. Some attorneys and contractors have been accused of exploiting assignment of benefits (AOB) agreements, leading to significant legal costs for insurers. Florida accounts for a disproportionate percentage of the nation’s property insurance lawsuits.
HB 1551 would enable policyholders to recover attorney fees if they prevail in lawsuits against their insurers, reversing changes that critics say have stripped consumers of vital leverage. Cassel described the bill as a balanced approach, aiming to curb exploitative practices while discouraging unnecessary litigation.
“HB 1551 takes a balanced approach to attorney fee awards in insurance contract disputes,” Cassel told lawmakers. “This bill aims to reform attorney fees awards in insurance litigation by promoting fairness and reducing unnecessary lawsuits.”
In 2022 and 2023, Florida lawmakers eliminated the “one-way attorney fee” provision. HB 1551 would implement a “prevailing party” standard in determining fee responsibility, often referred to as a “loser pays” system.
Industry groups have voiced concerns that the bill could destabilize Florida’s insurance market. Katelyn Ferry, representing the Florida Justice Reform Institute, argued the proposal threatened the recent progress. “Make no mistake: If this bill passes, it’ll eradicate Florida’s insurance market,” Ferry said.
Todd Michaels, president of the Florida Justice Association, supports the bill, saying it would restore fairness to a lopsided process. Michaels asked, “Shouldn’t it be the wrongdoer?” referring to insurers who improperly deny claims, leading to costly litigation.
House Speaker Daniel Perez has pledged to focus on consumer-oriented reforms. Florida Insurance Commissioner Michael Yaworsky acknowledged his office may have fallen short in investigating insurer conduct. During the subcommittee hearing, Democratic Rep. Ashley Gantt urged support for Cassel’s bill: “Peel back the mask, and the real culprits are unscrupulous insurers,” Gantt said. “This bill provides the justice that our constituents actually need.”
