Independent agents score a victory on SB 2006

Independent insurance agents scored a victory in the Florida Legislature March 30 during the Florida Association of Insurance Agents Legis-lative “Fly-in,” as it was announced that SB 2006/HB 145, which repeals joint and several liability, was approved after a decades-long fight, had passed the Senate and will now, as HB 145, go to Gov. Jeb Bush, who is expected to sign it.

Cheers and applause rang out from more than 120 FAIA members when the Senate’s action was announced.

The bill eliminates joint and several liability, which made every defendant in a lawsuit liable for the entire amount of the plaintiff’s damages regardless of the degree of fault of any individual defendant.

“After a decades-long fight, the Florida Senate gave final approval to legislation repealing the state’s joint and several liability law,” said the American Insurance Association.

FAIA said the repealed rule was problematic, in cases where the defendant, who was most at fault was bankrupt, or otherwise judgment proof, as well as in cases where the plaintiff settled with one defendant but subsequently was awarded damages greater than the settlement amount. In such instances, the settling defendant was responsible for the difference between the settlement amount and the award.

FAIA said joint and several liability effectively converted lawsuits into quests for financially viable defendants. As a result, those “deep-pocket” defendants settle out of court for fear of being on the hook for a substantial award, even if they are only minimally at fault for an injury.

Abolishing joint and several liability was FAIA’s single most important lawsuit-related reform objective for the legislative session. It is the cornerstone of the creation of a creation of a more fair and balanced approach to negligence cases.

Jubilation over the passage of the bill came immediately from FAIA, the American Insurance Association and even Attorney General Charlie Crist.

“The passage of HB 145 is a great victory for the state’s business community who experienced firsthand the unfair financial consequences of joint and several liability,” Cecil Pearce, AIA vice president Southeast Region, said. “Hopefully, we can now move away from the long-standing litigation lottery mentality that has prevailed for years in the Florida courts, as plaintiffs lawyers sought to find the defendant with the deepest pockets.”

With the approval of HB 145, Florida replaces joint and several liability with proportionate liability. Under proportionate liability defendants are only responsible for their relative share of the damages in question.

“Passage of HB 145 is an impressive political victory for Gov. Bush and for the legislative leadership, Senate President Tom Lee and House Speaker Allan Bense,” Pearce said. “They made joint and several liability reform the number one tort reform priority for this session, which is Gov. Bush’s last as governor, and for Bense and Lee in their leadership positions. These leaders understand that economic development is closely tied to a state’s litigation environment, and today’s action sends a strong message to companies throughout the country that Florida is open for business.”

Crist, a candidate for Governor, said: “In passing a bill to eliminate “joint and several liability,” the Florida Legislature made an important statement on behalf of our state’s economy, while still allowing injured plaintiffs to seek compensation from those who truly caused their injuries.

“Since I first called for reform of this legal concept, many others have come to recognize that joint and several liability is unfair, it is detrimental to our state, and it defies common sense while encouraging abuse.

“It is unfair because it forces a business or a person that may be only minimally responsible for a person’s injuries to pay for the mistakes of others. It is detrimental to small businesses, which are the lifeblood of Florida’s economy but could be forced to close if made to pay more than their share of damages.

“Those who are truly injured must always have legal recourse to seek compensation from those who caused the injuries. Repealing joint and several liability is one of the best things the Legislature can do this year to better help Florida’s business community. I commend the House and Senate for their commitment to our state’s economy, and look forward to the bill being signed into law by Governor Bush.”