Ronald Kammer Discusses Implications of the Elimination of the One-Way Fee Shifting Statute on First Party Insurance Litigation in Florida

Hinshaw partner Ronald Kammer discussed in a Daily Business Review byline the elimination of the one-way fee-shifting statute for first-party claims brought against residential and commercial surplus lines and admitted property insurers and whether its elimination will decrease litigation in Florida. Kammer noted that the elimination of the statute comes as homeowner insurance claims in Florida accounted for just over eight percent of all homeowners' claims in the United States in 2019, but accounted for more than 76 percent of all litigation against insurers nationwide.

Kammer said that the elimination of the statute will primarily impact first-party claims brought by homeowners that involve amounts less than $50,000. "Most homeowners who have smaller claims may not be able to pay a lawyer's hourly fee and limiting lawyers to a contingent fee will remove the incentive for lawyers to represent homeowners in these small dollar cases". Overall, Kammer predicts that this change will decrease litigation.

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"Will the Elimination of the One-Way Fee Shifting Statute Decrease First-Party Insurance Litigation in Fla.?" Daily Business Review, January 5, 2023.