Good Morning! I want to share an extraordinary collaboration that’s just taken place by these groups and ask for your help:
At issue: the
Contingency Fee Multiplier
, which
allows plaintiff attorneys to be awarded double or triple the customary attorney fees
(called “Lodestar”) in insurance claims litigation. It’s been in routine use in Florida since 2017 due to a Florida Supreme Court decision. As a result:
Santiago v. Florida Peninsula Insurance Co.
A plumbing leak resulted in a $41,000 award. Despite evidence of numerous, qualified attorneys willing to take the case,
the judge doubled the Lodestar fee to $1,201,670
.
Deshpande v. Universal Property & Casualty Insurance Co.
A property insurance case involving disputed repair costs of $23,335.38 resulted in a settlement of $25,000. The judge calculated a Lodestar fee of $206,090.00, including hourly rates of $675 and $700, and
doubled the fee to $415,495.00
.
Pedrero v. Citizens Property Insurance Corp.
The plaintiff secured a settlement for $35,000. The court found a multiplier of 2.01 was appropriate, bringing the
total attorney’s fee award to $702,927.15
.
If this seems fair and reasonable to you, then please stop reading and enjoy the rest of your day
.
If you find it startling, you’re in good company. Each of the above groups has made a clear and convincing argument in their letter to Governor Ron DeSantis on its abuse and the consequences it has reaped on Florida’s marketplace through higher insurance rates on
all consumers
.
You may belong to one of the above organizations.
I urge you to click their link to read their letter to the Governor
, urging him to support
Senate Bill 914
and
House Bill 7071
. The bills would clarify Florida law to return to the federal Lodestar standard, where the court multiplies a reasonable hourly rate by a reasonable number of hours expended. Florida is the only state that doesn’t routinely follow this standard.
As an insurance, litigation, or ancillary services professional living and working in Florida,
we need your help
to convince Governor DeSantis, but
especially Senate President Bill Galvano
to give these two legislative bills full hearings and votes – up or down. We need to allow each of our elected state representatives and senators the opportunity to do their job in determining this significant public policy.
This is too important an issue to be decided by one group or one or two politicians behind the scene.
To contact Senator Bill Galvano:
850-487-5229/5021
941-741-3401
To contact Governor Ron DeSantis:
850-717-9337
850-488-7146
Thank you,
Lisa
P.S. We’ll continue to follow this issue and others in our weekly
Bill Watch
in the
LMA Newsletter
.
