Florida’s Proposed “Tort Unreform” Threatens Free Market

Our nation benefits when lawmakers at all levels of government enact policies that prioritize free market principles and protect consumers over the desires of special interests.

Once labeled the nation’s “judicial hellhole,” Florida took a meaningful step toward protecting consumers and free markets in 2023 by enacting sweeping tort reform. The legislation, championed by Governor Ron DeSantis and spearheaded by then House Speaker Paul Renner, is just beginning to improve Florida’s marketplace with lower costs, greater choice and increased protections for consumers.

Unfortunately, there are several efforts underway that could undue this progress and harm consumers, including Section 687.16 of SB 700, HB 1551, and HB 947.

HB 1551 would reinstate one-way attorney fees, giving courts the ability to award attorney fees in civil actions against insurers and surplus insurers. The measure would result in higher property insurance premiums and fewer carriers for homeowners to choose from.

Meanwhile, HB 947 would allow additional types of evidence in unpaid medical expense cases. As former Florida Speaker Paul Renner said regarding the legislation on X, “Just two years ago, the Florida Legislature ended sham litigation practices that made billboard lawyers rich at our expense… Billboard lawyers want those savings back in their pockets, and a vote today in the Florida House (HB 947) will give them exactly what they want. Very simply, a vote for this bill is a total giveaway to personal injury lawyers and will cost every Floridian money.”

The “Florida Farm Financial Protection Act” included in Florida Senate Bill 700 could increase frivolous lawsuits and government involvement in free enterprise in the Sunshine State. In an attempt to protect Florida’s agriculture sector from discrimination based on ESG – environment, social, and governance – factors, the legislation incentivizes trial lawyers to pursue litigation against banks accused of discrimination. Not only does Florida already have laws in place to prevent this type of discrimination, but the broad language in the bill also puts private business decisions in the hands of the government and trial lawyers, hindering financial institutions operations in Florida communities by wrongly assuming their guilt.

As Anthony DiMarco with the Florida Bankers Association said during a recent hearing, “this will just lead to another group coming in next year that decides they want a private right of action, and this will just carve away and carve away what you all, the Legislature and the governor, worked over in the last two years.”

Florida’s strides in recent years to advance free market principles and remove government from business decisions are noteworthy. Unfortunately, unravelling the successes of tort reform will be costly for essential services, such as health care and financial services. If this legislation passes this session, trail lawyers will take advantage, while consumers are stuck with the bill. “These tort unreform bills are a slippery slope that benefits trial lawyers while harming Sunshine State residents,” said Americans for Free Markets Executive Director John Wittman. “In a state known for protecting businesses and families, lawmakers should instead focus on consumer and free market safeguards.”