House version of claims reform bill omits one-way attorney fee ban
The bill differs from a recently filed
Instead, the bill allows assignees to collect legal fees if they win an amount equal to or greater than what they request in a prejudgment settlement proposal, and it enables insurers to collect legal fees from assignees if the amount awarded is equal to or less than the settlement offered by the insurer.
Attorney fees may not be awarded to either party if the amount awarded is less than a plaintiff initially requests and more than initially offered by an insurer, the bill says.
The bill, filed Tuesday by Reps.
Citizens officials, who helped craft the
"It may be a couple days before we are in a position to comment on it as they are looking at the details and mechanics of
"So far it looks comparable to the draft language that was prepared by Citizens and OIR, which we support." But he added time was needed to let the federation's defense counsel study how the bill proposes to allow prevailing sides to collect attorney fees.
Barring attorneys from collecting one-way attorneys fees when representing third-party assignees is a key provision of the
Over the past decade, attorneys and contractors have been filing thousands of lawsuits with little fear of being forced to pay insurers' legal fees, insurers contend. As the suits inflate costs of claims, insurers raise rates to transfer those costs to policyholders.
After the
The latest bill might be a retreat by insurers from the one-way fee prohibition "to make it more palatable to the Legislature," said
The existence of that law, he added, is also why "there is no need to alter the longstanding attorneys fee statute," he said.
A 21-day notification of intent to sue in the House bill would address insurers' complaints that they often first learn of new claims only when suits are filed, giving them no time to inspect damages.
But Levy questioned what the 21-day notice would accomplish. "Most lawyers put carriers on notice by sending a pre-suit demand letter before filing suit," he said.
Kees said state insurance regulators continue to believe that one-way attorney fees "are a driver behind the increased claim frequency and severity."
rhurtibise@sun-sentinel.com, 954-356-4071, twitter: twitter.com/ronhurtibise
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