Legal Reforms Lower “Tort Tax” in Florida


Legal reforms in Florida have significantly reduced the “tort tax,” benefiting residents but challenges like third-party litigation financing and foreign judicial influences remain.

Tom Gaitens, Executive Director of CALA Florida, highlighted the decrease in the annual “tort tax” to $1,056 per individual and $4,000 for a family of four. Insurance sector improvements have also been noted, with rate reductions from various insurers.

Despite progress, issues like third-party litigation financing and foreign judicial influences persist. Gaitens emphasized the need for transparency in financial arrangements and addressing foreign influences on the judiciary.

During a special session in 2022, the Florida Legislature addressed the property insurance crisis, aiming to reduce frivolous litigation. Senate Bill 2D focused on reducing attorney fee multipliers and preventing insureds from transferring attorneys’ fees.

Bill Herrle, from NFIB, discussed the positive impact of tort reform on small businesses, allowing them to focus on growth and innovation. However, workforce challenges and legal distractions continue to pose obstacles for small business owners.

Entrepreneurial spirit can also be dampened by litigation, influencing consumer prices and business innovation. Matt Silbernagel supported legislative changes to reduce legal burdens and regulate third-party litigation financing for fair legal processes.

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