Wire Services
After the issue died in the Senate during the 2020 legislative session, Senate Judiciary Chairman Jeff Brandes has refiled a proposal that would limit fees of plaintiffs’ attorneys in some property-insurance lawsuits.
Brandes this week filed a bill (SB 212) for the 2021 session that would place additional restrictions on what are known as “contingency risk multipliers.” Florida has long allowed plaintiffs to collect attorney fees when they prevail in cases against insurance companies, with the amounts typically set by a calculation of the number of hours spent on a case and a reasonable hourly rate. But courts also can approve contingency risk multipliers that increase the fees.
Under the bill, however, contingency risk multipliers could only be awarded “in a rare and exceptional circumstance with evidence that competent counsel could not be retained in a reasonable manner.”
The House during the 2020 session passed such a proposal, which was backed by business and insurance groups, but the issue did not get through the Senate. Opponents argued that the possibility of contingency risk multipliers can help ensure that capable attorneys will take cases and can discourage insurers from contesting valid claims.
The 2021 session will start in March.
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Republished with permission from The News Service of Florida.
