Partner Katelyn Ferry recently testified before the House Civil Justice and Claims Subcommittee. Representing the Florida Justice Reform Institute, she spoke against HB 1551. The proposed legislation seeks to eliminate offers of judgment and proposals for settlement, replacing them with a new fee-shifting provision.
Ferry argued that the current draft of this provision is unworkable and would effectively reintroduce attorney’s fees through indirect means. She warned that passing this bill could severely impact the Florida insurance market, potentially leading to insurers leaving the state or facing insolvency. “If this bill passes, it will eradicate the Florida insurance market and devastate its citizens,” Ferry said.
She further noted that such changes could lead to unaffordable spikes in insurance premiums for homeowners due to a lack of confidence from reinsurers. This situation might result in Citizens Property Insurance Corporation handling more policies than it can manage. Ferry emphasized that the bill primarily benefits attorneys rather than addressing broader reform goals.
Ferry concluded by urging lawmakers to allow previous legislative changes from 2022 to take effect before introducing new measures aimed at stabilizing the market.
The session where Ferry testified can be viewed online, specifically between minutes 1:27:00 and 2:20:00.
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