State fires back on insurance attorney fees
NSF Staff Report
Gov. Ron DeSantis’ administration is urging a Leon County circuit judge to toss out a challenge to the constitutionality of a new restriction on attorney fees in lawsuits against insurance companies.
State lawyers filed a 19-page motion last Wednesday asking for dismissal of the case filed May 31 by the Restoration Association of Florida and Air Quality Assessors, LLC, an Orlando firm that does work such as mold testing and leak detection.
The case involves part of a broad property-insurance bill (SB 2-D) that lawmakers passed in May during a special legislative session. That part of the bill dealt with “assignment of benefits,” a practice that involves homeowners signing over claims to contractors, who then seek payment from insurance companies — often spurring lawsuits about claims and payments.
Contractors in the past have been able to recover their attorney fees from insurers if they are successful in the lawsuits, a concept known as “prevailing party fees.”
But the new law stripped contractors of being able to recover prevailing-party fees when they are assigned benefits.
The Restoration Association of Florida and Air Quality Assessors allege the change violates equal-protection and due-process rights and denies contractors access to courts.
The case named as defendants Melanie Griffin, secretary of the Florida Department of Business and Professional Regulation, and Donald Shaw, executive director of the state Construction Industry Licensing Board.
In the motion to dismiss last Wednesday, DeSantis administration lawyers argued, in part, that Griffin and Shaw do not have a role in enforcing the new restriction on attorney fees. Also, the motion said the plaintiffs have not shown they have been injured by the new law.
“They plainly do not allege a concrete injury because they do not claim that they won a lawsuit against an insurer and were denied their attorney fees under (the law),” the motion said. “Nor do plaintiffs demonstrate an immediate threat of that occurring. Instead, they simply assume it will occur.”
Also Wednesday, Security First Insurance Co., Tower Hill Signature Insurance Co. and US Coastal Property & Casualty Insurance Co. filed a motion to intervene in the case in support of the state.
