Tom Gaitens, executive director of Florida Citizens Against Lawsuit Abuse (CALA), said that Floridians are burdened daily by a costly tort tax and emphasized the need for urgent reforms to close loopholes and ensure a fair, transparent civil justice system. He made this statement in a press release.
"Floridians are being robbed daily by the ‘tort tax' which are the pass-through costs because of a flawed civil justice system," said Gaitens. "We must continue to bail water out of our economic boat. This water of abuse keeps seeping through loopholes and gaps in our system. Reform is necessary to allow Florida's economy to glide more smoothly as is intended with transparency and a fair civil justice system for all. We cannot miss the opportunity of this legislative session to build upon the gains of the past."
According to a report from Citizens Against Lawsuit Abuse, excessive litigation in Florida has significant economic impacts, referred to as a "tort tax." The report estimates that the United States lost $557.8 billion in output and over 4.8 million jobs in 2023 due to lawsuit abuse, with Florida ranking 33rd in per capita tort costs at $1,238. These costs are passed on to consumers through higher prices and insurance premiums, particularly affecting industries such as retail, manufacturing, and health care. Under Governor Ron DeSantis, Florida has implemented several reforms, including 2023 tort reform that helped bring insurers back to the state. Advocates now urge lawmakers to build on this progress by targeting third-party litigation funding in the next legislative session.
In an op-ed, Brewster Bevis, CEO of the Associated Industries of Florida, expressed concerns about efforts in the Florida Legislature to roll back recent tort reforms. He argued that these efforts would undermine progress in lowering insurance rates and reducing abusive litigation practices. Bevis noted that prior to the reforms passed in 2022 and 2023, the state faced frequent frivolous lawsuits and inflated damage claims. He warned that new proposals could reopen litigation loopholes and increase premiums while primarily benefiting trial lawyers at the expense of Floridians.
Florida State Representatives Hillary Cassel and Paula Stark are advancing HB 1551, which would establish a "loser pays" standard for attorney’s fees in insurance lawsuits. The bill passed the House Insurance & Banking Subcommittee with a 15–1 vote. Representative Mike Caruso was the lone dissenter, arguing that the measure could lead to higher consumer costs rather than lower premiums. He cited Governor DeSantis’ recent announcement regarding market stabilization due to previous insurance reforms.
The Insurance Information Institute (Triple-I) released a report indicating that Florida’s property and casualty insurance market is stabilizing due to recent legislative reforms targeting legal system abuse and fraudulent claims. Litigation related to claims has significantly decreased; homeowners’ insurance premiums have leveled off; more than 40% of insurers have requested rate decreases for 2024; and new insurers have entered the market. Additionally, Citizens Property Insurance Corp., the state’s insurer of last resort, has reduced its policy count by nearly 40%, lowering taxpayer exposure. The auto insurance market has also been impacted by these reforms with a notable drop in auto lawsuits following changes such as banning assignment of benefits.
Gaitens is not only involved with CALA but also co-owns McDaniel Trading—a Sarasota-based commodities firm—and previously served as state director for FreedomWorks.org. He has founded two grassroots advocacy firms and served on boards of various nonprofit organizations.