Florida proposes legislation to roll back 2023 tort reform

Florida lawmakers have introduced a series of bills that would undo significant portions of House Bill 837, the 2023 tort reform law that aimed to curb excessive litigation and limit frivolous lawsuits.

The 2023 reform represented a major win for insurers, businesses and consumers by tightening rules around damages, attorney fees and medical billing. Now, several new bills could reverse these changes and increase litigation exposure for companies operating in the state.

Four bills are currently under discussion in the Florida House and Senate:

• HB 1551 / SB 426 – Attorney fees in insurance matters
  Would reintroduce attorney fee awards in certain insurance disputes, making it more financially attractive for plaintiffs to sue. It also revives the “offer of judgment” framework that increases risk for insurers.
• HB 451 / SB 554 – Insurance practices
  Proposes higher post-judgment interest rates, new financial reporting rules and changes to how companies define and protect trade secrets.
• HB 947 / SB 1520 – Medical damages in personal injury cases
  Would allow plaintiffs to present evidence of past and future medical expenses which are not limited to actual amounts paid.  Also removes Medicare reimbursement rate limit.
• HB 1437 / SB 1840 – Attorney fees in PIP cases
  Allows medical providers to recover attorney fees in personal injury protection (PIP) claims.

All four bills have progressed through various committees in the House; while they are expected to pass there, their future in the Senate remains uncertain. Gov. Ron DeSantis was a supporter of the 2023 reform and is not expected to support these rollbacks.

If passed, these bills could:

• Increase the number of lawsuits and overall litigation costs
• Reinstate plaintiffs’ ability to recover attorney fees, which would heighten settlement pressure
• Allow inflated medical damage claims back into personal injury and wrongful death cases
• Increase the financial burden for insurers and businesses facing judgments

If your organisation operates in or handles claims in Florida, it’s important to monitor these developments.

Sedgwick is tracking this legislation closely and will continue to provide updates as the situation evolves.