Florida Negligence Tort Reform: Key Changes Under HB 837

On March 24, 2023, Governor Ron DeSantis signed HB 837 into law, introducing major reforms to Florida’s litigation system. This law significantly impacts lawsuits against insurers and personal injury cases, making sweeping changes to how claims are handled in court.

The changes took effect immediately upon signing. However, some provisions apply only to cases arising after the law’s enactment. The bill also clarifies that existing insurance policies remain unaffected.

The anticipation of this law led to a surge in lawsuit filings before it was signed.

Florida Shifts to Modified Comparative Negligence

HB 837 changes Florida’s negligence standard from pure comparative negligence to modified comparative negligence.

Before this law, a plaintiff could recover damages even if they were mostly at fault. For example, a person found 90% responsible for their injuries could still recover 10% of damages. Under the new rule, a plaintiff who is more than 50% at fault cannot recover any damages. This change does not apply to medical malpractice cases.

Statute of Limitations for Negligence Claims Cut to Two Years

The law reduces the time to file a negligence lawsuit from four years to two years. This applies only to cases where the cause of action accrues after March 24, 2023. Under Florida law, a cause of action accrues when the last element necessary to prove the claim occurs.

Limits on Bad Faith Lawsuits Against Insurers

HB 837 makes it harder to sue insurers for bad faith.

The new law requires policyholders and claimants to act in good faith when submitting claims, making demands, and negotiating settlements. Mere negligence by an insurer is no longer enough to establish bad faith. Instead, a court will consider bad faith only when determining damages, rather than as a separate legal claim.

If multiple claims from a single event exceed policy limits, an insurer is not liable for failing to pay all claims, as long as it:

• Files an interpleader action within 90 days and distributes policy limits among claimants, or
• Uses binding arbitration to allocate policy limits fairly among claimants.

New Limits on Admissible Medical Evidence

The law changes what medical costs can be introduced as evidence in lawsuits.

For past medical expenses, only the amount actually paid—regardless of the source—can be considered. Unpaid medical bills must be calculated based on:

1. The amount a health insurer would pay, if the claimant has coverage.
2. The Medicare reimbursement rate at trial, or 140% of Medicaid rates if there is no Medicare rate.
3. The amount a third party paid if medical debt was sold to a collector.

Future medical expenses must be calculated based on what health insurance would pay. If the claimant lacks insurance, courts will use Medicare or 140% of Medicaid rates.

Changes to Attorney Fee Awards

HB 837 changes how courts award attorneys’ fees in lawsuits.

Previously, Florida courts could grant contingency fee multipliers based on factors like case difficulty and the likelihood of success. Now, there is a strong presumption that the lodestar method—multiplying reasonable hours worked by a fair hourly rate—is sufficient. Only in rare cases can courts award higher fees.

The law also eliminates one-way attorney’s fees in most insurance lawsuits. Insured individuals can still recover legal fees in declaratory judgment actions, but not in cases against surplus lines insurers or suits enforcing an insurance policy.

Property Owners Gain More Protection from Lawsuits

The law creates a presumption that owners of multifamily residential properties are not liable for crimes committed on their premises if they have certain security measures in place. These measures include:

• Proper lighting in common areas
• Deadbolt locks on unit doors
• Window locks
• Gates around pools

Additionally, the law replaces joint and several liability with comparative negligence in negligent security cases against property owners.