One frivolous claim could be enough to put a small business out of business
NFIB State Executive Director Bill Herrle today commended the House Civil Justice Subcommittee for passing House Bill 837 and urged the full House of Representatives to support Gov. Ron DeSantis’s plan to stop litigation abuse. NFIB State Legislative Director Tim Nungesser testified in support of the bill.
“This issue is incredibly important to Florida’s small businesses,” Herrle said. “Small businesses are especially vulnerable to frivolous lawsuits. It costs a lot of money to defend yourself in court, money a lot of small businesses don’t have. One baseless claim can be enough to put a small business out of business, even if the case is ultimately thrown out of court.”
Herrle said SB 837 would help small businesses by:
- Repealing one-way attorney fees in most cases, undercutting “you don’t pay if we don’t win” advertising claims.
- Prohibiting plaintiffs from collecting an award if they are found to be more than 50% responsible for their own injuries.
- Limiting “bad faith” claims, which is how overzealous trial lawyers win awards in excess of a business’s insurance policy limits.
- Requiring “truth in damages” to stop bad doctors from colluding with unscrupulous trial lawyers to inflate medical damages.
Nungesser said, “Main Street can’t afford to keep defending itself from groundless claims. Small businesses are dealing with a host of problems right now, including inflation and supply chain disruptions that create uncertainty and affect their ability to operate at full capacity, but these are global issues. Litigation abuse, though, is a state issue, and it’s something the Florida Legislature can and should address.”
