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Will eliminating 'one-way fee shifting' reduce insurance litigation in Florida?

The elimination of one-way fee shifting will impact many first-party claims brought by homeowners that involve amounts less than $50,000.

By Ronald L. Kammer | January 09, 2023 at 01:05 AM
The difference in the amount of fee awards and the application of a contingent risk multiplier between state and federal court judges was dramatic, even though the law governing the loadstar amount is identical, with federal court judges awarding fees in the $300 to $400 range and state court judges often twice that amount to the same attorneys for handling substantially the same type of case. (Credit: Serena Caleidoscopioartproject) The difference in the amount of fee awards and the application of a contingent risk multiplier between state and federal court judges was dramatic, even though the law governing the loadstar amount is identical, with federal court judges awarding fees in the $300 to $400 range and state court judges often twice that amount to the same attorneys for handling substantially the same type of case. (Credit: Serena Caleidoscopioartproject)

In Florida’s SB 2-A and SB 4-A signed in December 2022, the legislature recently eliminated Florida’s one-way fee-shifting statute for first-party claims brought against residential and commercial surplus lines and admitted property insurers.

Under the former law, a court was obligated to award a reasonable fee in favor of the insured or beneficiary who settled or obtained a judgment in his or her favor against a property insurer. Both updated sections of the state’s insurance rules now state that “in a suit arising under a residential or commercial property insurance policy, there is no right to attorney fees …”

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