APCIA lauds state’s efforts to rein in third-party litigation funding

The American Property Casualty Insurance coverage Affiliation (APCIA) has lauded the Florida Home of Representatives’ Civil Justice Subcommittee for advancing a client safety invoice.

Home Invoice 1179, the Litigation Funding Safeguards and Transparency Act, would enhance transparency in third-party litigation financing, APCIA mentioned.

“Predatory lawsuit lending takes benefit of weak Floridians and permits unknown third events – typically hedge funds or international actors – to meddle in and make a mockery of our court docket system,” mentioned Logan McFaddin, APCIA vp of state authorities relations. “APCIA commends the Florida Home Civil Justice Subcommittee for taking motion to deal with this important subject by supporting HB 1179 at this time.”

McFaddin mentioned third-party litigation was a “secretive, unregulated apply” that may hurt customers.

“It not solely can go away injured events with little to no award cash due to the exorbitant rates of interest, but in addition enhances the potential of frivolous lawsuits and threatens to drive up the prices of merchandise, companies and insurance coverage throughout Florida,” McFaddin mentioned. “HB 1179 will deliver much-needed transparency to this trade whereas defending customers and preserving the integrity of our court docket system.”

“This is a crucial client safety invoice, and APCIA appears ahead to persevering with to work with lawmakers to advance it on this session,” he mentioned.

HB 1179 isn’t the primary Florida laws geared toward curbing insurance coverage litigation. Final 12 months, state Gov. Ron DeSantis signed into regulation a invoice geared toward lowering frivolous lawsuits in opposition to companies and insurance coverage corporations.

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