SB 914 — Contingency Risk Multipliers

Florida Senate - 2020 CS for SB 914 By Senatorthe BrandesCommittee 24-01110-20on 2020914__Banking Aand billInsurance; to be entitled An act relating to property insurance;

and Senator Brandes 597-02424-20 2020914c1 A bill to be entitled An act relating to contingency risk multipliers;

providing that, for certain attorney fees awarded for claims arising under property insurance policies, thea maximumstrong feepresumption ais courtcreated maythat awarda lodestar fee is asufficient lodestarand fee;reasonable;

prohibitingproviding thethat courtsuch frompresumption consideringmay contingencybe riskrebutted oronly usingunder acertain contingencycircumstances; risk multiplier;

amending s.

627.736, F.S.;

conforming a provision to changes made by the act;

1211 Be It Enacted by the Legislature of the State of Florida:

1413 Section 1. Subsection (4) is added to section 627.428, Florida Statutes, to read:

627.428 Attorney fees.— (4) In awardingan award of attorney fees under this section for a claim arising under a property insurance policy, thea maximumstrong feepresumption ais courtcreated maythat awarda lodestar fee is asufficient lodestarand fee.reasonable.

ASuch courtpresumption may notbe considerrebutted contingencyonly risk in determininga therare lodestarand feeexceptional orcircumstance usewith aevidence contingencythat riskcompetent multipliercounsel tocould increasenot thebe lodestarretained fee.in a reasonable manner.

Section 2. Subsection2. This (8)act ofshall sectiontake 627.736,effect FloridaJuly Statutes,1, is2020. amended to read:

627.736 Required personal injury protection benefits;

exclusions;

priority;

claims.— (8) APPLICABILITY OF PROVISION REGULATING ATTORNEY FEES.

With respect to any dispute under the provisions of ss.

627.730 627.7405 between the insured and the insurer, or between an assignee of an insured’s rights and the insurer, the provisions of ss.

627.428 and 768.79 apply, except as provided in subsections (10) and (15), and except that any attorney fees recovered must:

(a) Comply with prevailing professional standards;

(b) Not overstate or inflate the number of hours reasonably necessary for a case of comparable skill or complexity;

and (c) Represent legal services that are reasonable and necessary to achieve the result obtained.

39 Upon request by either party, a judge must make written findings, substantiated by evidence presented at trial or any hearings associated therewith, that any award of attorney fees complies with this subsection.

Notwithstanding s.

627.428, Attorney fees recovered under ss.

627.730-627.7405 must be calculated without regard to a contingency risk multiplier.

Section 3. This act shall take effect July 1, 2020.