Florida's Legal Transformation: Dropped from Judicial Hellholes List

Florida's Legal Climate Improvement

Florida, once a top contender on the American Tort Reform Association's (ATRA) annual 'Judicial Hellholes' list, has made significant strides in improving its legal climate. ATRA's 2020 report highlights the state's progress, attributing much of the change to the election of Governor Ron DeSantis (R) and his subsequent appointments to the Florida Supreme Court. These new justices are seen as more supportive of legislative efforts to curb lawsuit abuse, marking a departure from the previous court's more activist stance.

AOB Litigation Reforms

One of the key reforms implemented under DeSantis' leadership is the curbing of Assignment of Benefits (AOB) litigation. AOB, a common insurance practice, allows third parties to bill insurers directly on behalf of policyholders. However, in Florida, this practice had led to excessive legal fees often far exceeding the actual damages, particularly in auto glass repair cases. The new law imposes stricter requirements on contractors and allows insurers to offer policies with limited or no AOB rights, though it excludes auto glass repairs. This reform is expected to significantly reduce the number of AOB lawsuits, which had surged from 3,800 in 2013 to over 20,000 in 2017.

Impact on Judicial Hellholes List

Florida's improvements have led to its removal from the 2020 'Judicial Hellholes' list, with Philadelphia taking the top spot. The list, which identifies jurisdictions where laws and court procedures are applied unfairly, now includes California, New York City, Louisiana, and St. Louis in the top five. The ATRA report also notes emerging trends such as the use of public nuisance law to shift costs to businesses, lead paint and climate change litigation, and new rights of action against employers. Despite these challenges, Florida's progress underscores the potential for legal reform to improve a state's judicial climate.

For readers, it's important to stay informed about legal reforms in their state and understand how these changes can impact their insurance policies and legal rights. Engaging with local representatives and staying updated on legislative actions can help ensure that the legal system works fairly and efficiently.