HomeBest HostingThe Florida group of entrepreneurs is already filing a lawsuit that causes...

The Florida group of entrepreneurs is already filing a lawsuit that causes new restrictions on AOB taxes

New Now you can listen to the articles in the Insurance Journal!

A group of entrepreneurs wasted no time in challenging the constitutionality of a law passed at last week’s special session of the Florida Legislature, one of the restoration companies claiming to highlight and deprive them of lawyers’ fees in claims for benefits.

“Failure to recover the fees of the predominant parties’ attorneys will effectively close the door to the plaintiff’s court, as it will be prohibitive to pay a lawyer for these types of low-value claims,” ​​the complaint, filed with the Leon County Circuit Court by Restoration. Florida Association and Air Quality Assessors.

Sprowls special session
Florida Speaker Chris Sprowls closed the special session on property insurance on May 25. (AP Photo / Phil Sears)

The Senate’s 2D bill, passed largely along party lines, prohibits assignees from receiving attorneys’ fees, even if they prevail in court. Insurers have long complained that taxes, along with the Florida tax multiplier, encourage unnecessary litigation and cost the industry huge sums each year.

The lawsuit alleges that “deprivation of this right is significant because SB 2D unfairly treats contractors as assignees other than homeowners and insurers.”

Some MPs and supporters of the insurance industry at the special session predicted that the bill will be challenged by contractors, just as the Senate Bill 76 of 2021 was challenged and then temporarily suspended by a court. SB 76 sought to prevent roof contractors from claiming homeownership and to encourage them to apply for roof damage insurance. A federal judge has said the law could violate contractors’ constitutional rights to freedom of expression.

Kidwell (Linkedin)

The restoration association did not bring this challenge, but it is no stranger to Florida insurers. The president of the association is Richie Kidwell, who also owns Air Quality Assessors, a mold repair company. He spoke out strongly against SB 2D in the special session on May 23-25. Kidwell and his group also recently filed a lawsuit against the Florida insurance commissioner and two carriers for approving their policies.

A claim by American Integrity Insurance provides premium discounts for policyholders who accept compulsory arbitration in claims. Another, by Heritage Property & Casualty Insurance, states that the insurer will not pay the contractors, but will reimburse only the insured for the restoration work, effectively excluding the AOB damages.

This trial and the May 31 SB 2D appeal were filed by Boca Raton’s lawyer, Joshua Alper, and the Center for Constitutional Litigation.

A Florida law professor says none of the lawsuits have much chance of success.

“In a word, this process is not going anywhere,” said Robert Jarvis, a professor at Nova Southeastern School of Law, about the challenge at SB 2D.

He explained that it is very difficult to win a lawsuit based on the equal protection clause of the Florida Constitution, section I, section 2. “This is because the clause protects only claimants who are“ in a similar position ”to their groups that are not affected by the law that the plaintiffs are challenging, ”Jarvis said. “But there is almost always a difference between claimants and non-claimants.”

Jarvis said that in weighing the validity of an economic regulation law, the courts use a “rational basis” test. The defendants, in this case, the Florida Department of Business and Professional Regulation, only need to show that there is a rational basis for distinguishing the purposes of the law - the assignment of benefits.

“This is a very easy standard to meet - there is almost always a rational basis that supports the law and the distinctions it makes,” said Jarvis, who studies and teaches constitutional law and contract law. “In passing legislation, the Florida Legislature is not required to address every disease. Thus, the selection of only AOB contractors is a perfectly legitimate exercise of the powers of the Legislature. “

The plaintiffs must also point out that the law is clearly unconstitutional, but the courts have generally found that, although they may not agree with a piece of legislation, they will usually not repeal it.

“Judges often think that there is a better solution that the Legislature could and should have chosen, but they will not repeal a law simply because it is not the best solution,” Jarvis said in a statement. e-mail. “They leave that to the Legislature (which can always see the wrong way and enact a new law) and the people (who can always make things right by electing new legislators).”

Florida Contracting Proceedings

interested in contractors?

Receive automatic alerts for this topic.

Dedicated Server
Dedicated Serverhttps://www.winteringhamfields.com
Hi, By Profession I am an Injury Attorney who handles accident cases of cars with no insurance. I took College Classes online to get a degree in game design too.

Most Popular

Recent Comments