HB 1179 – Litigation Financing

On Thursday, January 25, HB 1179 by Representative Tommy Gregory (R-Lakewood Ranch) and Representative Toby Overdorf  (R-Palm City) was heard by the House Civil Justice Subcommittee and was reported favorably with 10 yeas and 7 nays. Republicans Mike Beltran and Traci Koster joined with all Democrats on the committee in voting against the bill. AIF stood in support of this legislation.

HB 1179 repeals the practice known as litigation financing. Third party litigation financing is an issue that stems from out of state firms funding and controlling litigation in Florida. Firms operating like Wall Street venture capitalists find plaintiffs and buy a percentage of a lawsuit. As a co-plaintiff on the case, litigation financiers are able to negotiate the best outcome for their interest, not the plaintiff. In addition to causing widespread and frivolous lawsuits, this practice can cause litigation to be drawn out for years, costing businesses and Floridians billions.

HB 1179 will now go to the House Justice Appropriations Subcommittee for consideration.

AIF supports legislation that ends the practice of litigation financing in Florida. Big money firms profit from suing Florida’s businesses, costing billions in nuclear verdicts and massive settlements.