SB 1140 – Relating to Attorney Fees and Costs

On Tuesday, April 23, SB 1140 by Senator Travis Hutson (R-Palm Coast) was heard before the Senate Rules Committee and was reported favorably with 10 yeas and 7 nays. AIF’s Senior Vice President of State and Federal Affairs, Brewster Bevis, stood in support of this legislation.

This bill authorizes the payment of attorney fees and costs to a party challenging the adoption or enforcement of a local government ordinance on preemption grounds if a court finds that the subject of the ordinance has been preempted by the Constitution or State law. However, a local government may avoid liability for attorney fees and costs if the challenged ordinance is repealed or withdrawn within 21 days of either (1) receiving written notice of the claim or (2) the filing of a motion for attorney fees, whichever is earlier.

SB 1140 will now move to the Senate floor.

AIF supports legislation that removes onerous regulations and creates a climate in which business can grow.

HB 7065 – Relating to Insurance Assignment Agreements

On Wednesday, April 24, HB 7065, sponsored by the House Civil Justice Subcommittee, was read a third time on the Senate floor and passed with a vote of 25 yeas and 14 nays.

Unfortunately, auto glass was removed from legislation on the House floor.

The abuse of the one-way attorney fee statute in relation to “assignment of benefits” (AOB) has created a relatively new form of litigation over auto glass repairs and property damage. These legal abuses are perpetrated by a handful of lawyers and vendors who work together to strip benefits away from policyholders and use these to force higher settlements from insurers, and even go so far as to sue in the name of the policyholder, often without the policyholder’s consent. This bill helps prevent future abuse of AOBs by:

• Limiting an assignee’s ability to recover certain costs from the insured;
• Requiring the assignee to give the insurer notice of the assignee’s intent to file a lawsuit;
• Requiring the insurer to respond to the assignee’s notice;
• Setting the formula that will determine which party, if any, receives an award of attorney fees should litigation related to an assignment agreement result in a judgment; and
• Allowing an insurer to offer a policy prohibiting assignment.
  
  

HB 7065 passed both chambers and will now go to the Governor.

AIF supports reforms to the AOB process to protect consumers against these abuses that drive up insurance costs.