Tort reform supporters are expressing disappointment over the failure of the Florida Legislature to pass a bill that would have shed more light on third-party litigation financing agreements and their potential relationships with foreign entities.
Lawmakers adjourned the 2024 session last week without approving Senate Bill 1276, sponsored by state Sen. Jay Collins (R-Tampa), which would have barred litigation financiers from gaining a larger share of damages awards than what would be collected by plaintiffs. The bill would have also prohibited financiers from paying a referral fee or commission to any party.
Such legal reforms have attracted bipartisan support, according to supporters. U.S. senators, including Republican John Kennedy of Louisiana and Democrat Joe Manchin of West Virginia, have said that litigation financing reforms are needed to keep foreign adversaries from taking part in U.S. civil litigation.
“Third-party litigation reform is not only important for civil justice in Florida but remains a bipartisan national security issue,” Tom Gaitens, executive director of Florida Citizens Against Lawsuit Abuse, told the Florida Record in an email. “Florida CALA not only was disappointed in the failure to advance the bill this year but believes it is a must-pass next session. China and Russia cannot be allowed to continue to interfere with Floridians personal economic interests, our civil justice system or our national security.”
Lawmakers had a chance to be a leader in this area of tort reform but chose not to, according to Gaitens.
“The fact is, the Legislature had the opportunity to put national security ahead of politics,” he said. “They had the chance to lead, nationally, on a vital issue to prevent China and Russia from interfering in Florida economically and our national security.”
The Florida chapter of the National Federation of Independent Business also noted the failure of SB 1276 in its summation of the 2024 session. The measure would have provided needed guardrails on litigation financing, according to the Florida NFIB.
“We expected the 2024 session to be a bit underwhelming largely because the Legislature had a historic 2023 session where they passed dozens of NFIB priorities and made big changes to Florida’s tort laws,” Bill Herrle, the Florida NFIB’s executive director, said in a prepared statement. “When you look at the two sessions together, Florida’s small businesses had a monumental legislative cycle, getting major wins for small business owners.”
The Florida Chamber of Commerce painted a more upbeat picture of the legislative session, noting the passage of chamber-supported measures on education, health care, infrastructure and workplace consistency.
“The Florida chamber led the fight for the preemption of inconsistent and dangerous workplace safety standards contained within (House Bill) 433 around heat exposure, which became necessary after a county in Florida contemplated a first-in-the-nation, local workplace heat safety standard,” the chamber said in a prepared statement.
Supporters of third-party litigation financing argue that it helps plaintiffs to prevail over corporations with deep pockets. But opponents contend the practice leads to excessive litigation and clogged courts. Critics also point to statistics showing that 70% to 80% of all U.S. home insurance lawsuits in recent years have originated in Florida.