David Murray
A lot of Florida attorneys will be reducing their dependence on complex property insurance claims as the legal marketplace evolves in the wake of reforms that have ended the previous one-way attorney fee system benefiting trial lawyers.
That appears to be the emerging consensus among civil litigation observers as legal reforms passed in the last three years begin to take effect. The Tampa-based Morgan & Morgan law firm disbanded its insurance litigation unit after state lawmakers and Gov. Ron DeSantis approved measures to prevent policyholders from recovering attorney fees and court costs from insurers if they prevail in insurance lawsuits.
Other law firms, however, have not taken such drastic steps.
“We have not reduced our focus on insurance litigation in recent years, and it does remain the largest focus of our law firm's business,” said David C. Murray, a trial attorney whose law firm, the Murray Law Group, represents policyholders. “However, due to recent legal reforms, Florida insureds are becoming more responsible for legal fees than in the past. This has become a troubling issue for most policyholders that have had claims.”
In turn, the insurance industry has become more aggressive in claims denials, delays and underpayments, forcing policyholders to retain attorneys such as Murray to guide them, he said.
“What’s changed is the manner and methods trial attorneys can use to get paid,” Murray told the Florida Record.
Instead of having the ability to recover attorney fees from the insurer, consumers are now forced to either pay an attorney by the hour or on a contingency basis, in which plaintiffs must turn over a third of their damages awards to attorneys. Such awards are meant to help the policyholders repair or rebuild property.
“Yes, it’s going to change the marketplace for sure,” he said, adding that many attorneys will move away from helping consumers resolve complex insurance disputes and on to other legal specialties.
“The real person who’s going to be hurt is the consumer,” Murray said.
Reformers promised significant property insurance rate decreases, but large reductions have yet to materialize, he said.
Mark Friedlander, spokesman for the Insurance Information Institute (Triple-I), said attorneys who have seen the incentives for litigating insurance claims in Florida dry up are spreading their efforts into other markets.
“Many Florida plaintiff’s law firms have taken their “jackpot justice” tactics on the road, encouraging disaster victims in other states to sue their insurers rather than trying to settle a claim,” Friedlander told the Record in an email. “Triple-I continues to call for more tort reform legislation across the U.S. to wrangle in what’s become out-of-control tactics by billboard attorneys who are exploiting Americans and increasing costs for critical household products and services.”
Matthew Monson, whose law firm defends insurers and aims to root out fraud in the system, said his clients have seen precipitous drops in litigated claims since the end of 2022. The “nectar” for fraudulent activities in the filing of property insurance claims was the one-way attorney fees, according to Monson.
“That’s gone now,” he said, adding that this lowers the financial incentive for plaintiff’s attorneys to participate under the current rules.
Tom Gaitens, executive director of Florida Citizens Against Lawsuit Abuse (CALA), pointed out that John Morgan, founder of Morgan & Morgan, has failed to acknowledge the positive impacts of legal reforms in Florida. The reforms have led to the entry of 11 new insurers into the state’s insurance market, stabilized year-over-year rates and led to a nearly 25% drop in personal property lawsuits in the first six months of this year compared to the same period last year, Gaitens said.
“Thankfully, Gov. DeSantis has helped to stop the implosion of our property insurance marketplace through his support for smart, targeted reforms.,” he said. “This is no time to roll back reforms showing measured success.”
The Florida Office of Insurance Regulation has attributed a drop in auto insurance rates this year to legal reforms as well.
“Florida’s top five auto insurance groups – amounting to 78% of the market – are reporting average rate changes of -6.5% and some as high as -11.5%,” Insurance Commissioner Mike Yaworsky said in a prepared statement. “This is great news, and I’m glad consumers will start feeling relief in their premiums soon.”
In comparison, the average auto insurance rate change in Florida in 2023 amounted to an increase of 31.7%, according to the Office of Insurance Regulation.
