Third-party funding described as a “secretive, unregulated observe”
The American Property Casualty Insurance coverage Affiliation (APCIA) has lauded the Florida Home of Representatives’ Civil Justice Subcommittee for advancing a shopper safety invoice.
Home Invoice 1179, the Litigation Funding Safeguards and Transparency Act, would improve transparency in third-party litigation financing, APCIA stated.
“Predatory lawsuit lending takes benefit of susceptible Floridians and permits unknown third events – usually hedge funds or international actors – to meddle in and make a mockery of our court docket system,” stated Logan McFaddin, APCIA vice chairman of state authorities relations. “APCIA commends the Florida Home Civil Justice Subcommittee for taking motion to handle this important situation by supporting HB 1179 immediately.”
McFaddin stated third-party litigation was a “secretive, unregulated observe” that may hurt shoppers.
“It not solely can depart injured events with little to no award cash due to the exorbitant rates of interest, but in addition enhances the potential for frivolous lawsuits and threatens to drive up the prices of merchandise, companies and insurance coverage throughout Florida,” McFaddin stated. “HB 1179 will deliver much-needed transparency to this business whereas defending shoppers and preserving the integrity of our court docket system.”
“This is a crucial shopper safety invoice, and APCIA appears ahead to persevering with to work with lawmakers to advance it on this session,” he stated.
HB 1179 isn’t the primary Florida laws geared toward curbing insurance coverage litigation. Final yr, state Gov. Ron DeSantis signed into regulation a invoice geared toward decreasing frivolous lawsuits towards companies and insurance coverage firms.
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