ARTICLE
Monday, the Senate Judiciary Committee advanced two Florida Chamber priorities related to litigation financing and medical negligence reform, which will help improve Florida’s bottom-five legal climate that currently costs Florida families an additional $5,065 each year. SB 1276 – Litigation Financing, by Senator Jay Collins, passed by a vote of 10-0, and SB 248 – Medical Negligence, by Senator Clay Yarborough, by a vote of 8-2. The Florida Chamber would like to thank Senator Jay Collins and Senator Clay Yarborough for their leadership on these bills. Litigation Financing Last session, Florida made significant progress in repairing its broken legal climate, but the unchecked proliferation of third-party litigation funders could incentivize the last thing our state needs to continue its economic momentum – more litigation. SB 1276, by Senator Jay Collins, addresses third-party litigation financing (TPLF), a growing industry where hedge funds and investors fund civil litigation in exchange for a percentage of the settlement or judgment. The existing lack of regulation in TPLF agreements enables both foreign and domestic entities to invest in Florida’s legal system without transparency and steer litigation without protective measures in place. Addressing this issue, SB 1276 provides for transparency and crucial safeguards to ensure that our civil justice system is operating efficiently and without unknown influence. The bill mandates that entities, whether foreign or domestic, engaged in investing in litigation in Florida disclose their involvement to all relevant parties. The bill also prohibits a litigation financier from directing or making any decisions in the civil action they are investing in to prevent them from influencing the outcome or seeking an increased return. Additionally, the bill includes consumer protections to ensure funders do not receive a larger percentage of the settlement than the plaintiff. This bill does not prevent litigation financing agreements, but simply provides transparency and accountability to ensure that our legal system operates efficiently and that if foreign or domestic entities are funding litigation in Florida for a return on investment, that it happens in the sunshine, not in the shadows. Medical Negligence The Senate Judiciary Committee heard an amendment yesterday to SB 248 by Senator Clay Yarborough to reinstate non-economic damage caps for medical negligence claims. The amendment to SB 248 follows best practices found in other states to rein in medical malpractice insurance costs and address physician shortages. The amendment reinstates a non-economic damages cap previously adopted by the Florida Legislature, which limits the maximum amount paid for non-economic damages, such as pain and suffering, which are paid above and beyond economic damages. This per-claimant non-economic damages cap will help address Florida’s highest in the nation medical malpractice insurance costs, encourage physicians to practice in Florida, while also protecting existing individual providers from losses that may drive them out of Florida or out of the healthcare system entirely. Florida’s highest in the nation medical malpractice insurance premiums are an additional contributor to our medical workforce shortage, driving physicians to practice in other states, switch specialties, abstain from performing high-risk procedures, or even retire early from the practice of medicine. States that have reformed their medical malpractice systems have seen drastic improvements to their medical malpractice insurance market and workforce. Texas implemented non-economic damage caps in 2003 and has seen a 46% decrease in medical malpractice insurance premiums since implementation. Texas has also seen their medical licenses triple between 2003 and 2022. Call to Action To join in our efforts to protect your business from the negative consequences associated with Florida’s bottom-five legal climate, please contact Carolyn Johnson, Vice President of Government Affairs, at cjohnson@flchamber.com.
Monday, the Senate Judiciary Committee advanced two Florida Chamber priorities related to litigation financing and medical negligence reform, which will help improve Florida’s bottom-five legal climate that currently costs Florida families an additional $5,065 each year. SB 1276 – Litigation Financing, by Senator Jay Collins, passed by a vote of 10-0, and SB 248 – Medical Negligence, by Senator Clay Yarborough, by a vote of 8-2. The Florida Chamber would like to thank Senator Jay Collins and Senator Clay Yarborough for their leadership on these bills.
Litigation Financing
Last session, Florida made significant progress in repairing its broken legal climate, but the unchecked proliferation of third-party litigation funders could incentivize the last thing our state needs to continue its economic momentum – more litigation. SB 1276, by Senator Jay Collins, addresses third-party litigation financing (TPLF), a growing industry where hedge funds and investors fund civil litigation in exchange for a percentage of the settlement or judgment. The existing lack of regulation in TPLF agreements enables both foreign and domestic entities to invest in Florida’s legal system without transparency and steer litigation without protective measures in place.
Addressing this issue, SB 1276 provides for transparency and crucial safeguards to ensure that our civil justice system is operating efficiently and without unknown influence. The bill mandates that entities, whether foreign or domestic, engaged in investing in litigation in Florida disclose their involvement to all relevant parties. The bill also prohibits a litigation financier from directing or making any decisions in the civil action they are investing in to prevent them from influencing the outcome or seeking an increased return. Additionally, the bill includes consumer protections to ensure funders do not receive a larger percentage of the settlement than the plaintiff.
This bill does not prevent litigation financing agreements, but simply provides transparency and accountability to ensure that our legal system operates efficiently and that if foreign or domestic entities are funding litigation in Florida for a return on investment, that it happens in the sunshine, not in the shadows.
Medical Negligence
The Senate Judiciary Committee heard an amendment yesterday to SB 248 by Senator Clay Yarborough to reinstate non-economic damage caps for medical negligence claims. The amendment to SB 248 follows best practices found in other states to rein in medical malpractice insurance costs and address physician shortages. The amendment reinstates a non-economic damages cap previously adopted by the Florida Legislature, which limits the maximum amount paid for non-economic damages, such as pain and suffering, which are paid above and beyond economic damages. This per-claimant non-economic damages cap will help address Florida’s highest in the nation medical malpractice insurance costs, encourage physicians to practice in Florida, while also protecting existing individual providers from losses that may drive them out of Florida or out of the healthcare system entirely.
Florida’s highest in the nation medical malpractice insurance premiums are an additional contributor to our medical workforce shortage, driving physicians to practice in other states, switch specialties, abstain from performing high-risk procedures, or even retire early from the practice of medicine. States that have reformed their medical malpractice systems have seen drastic improvements to their medical malpractice insurance market and workforce. Texas implemented non-economic damage caps in 2003 and has seen a 46% decrease in medical malpractice insurance premiums since implementation. Texas has also seen their medical licenses triple between 2003 and 2022.
Call to Action
To join in our efforts to protect your business from the negative consequences associated with Florida’s bottom-five legal climate, please contact Carolyn Johnson, Vice President of Government Affairs, at cjohnson@flchamber.com.