Florida’s new tort reform law, HB 837, has changed the landscape for personal injury victims across the state. Enacted in March 2023, this legislation replaces Florida’s long-standing pure comparative negligence rule with a modified comparative negligence system, a shift that can significantly impact the amount of compensation injury victims receive.
Along with a shortened two-year statute of limitations, HB 837 emphasizes the importance of understanding your rights more than ever before. As a Florida resident, will you be affected? If so, then how?
At Abercrombie, P.A., our car accident lawyers in Florida have been dedicated to guiding car accident victims through the legal complexities of HB 837. In this blog, we’ve prepared an in-depth discussion on the key changes introduced by HB 837, its impact on Florida residents, and how our firm can help protect their rights under the new law.
What are the Key Changes made by HB 837 Bill?
The incorporation of HB 837 has made it easier to synchronize the process and timeframe of lawsuits. Here’s what you need to know about the key changes of HB 837 bill:
Modified Comparative Negligence
Earlier, Florida used to function in a Pure Comparative Negligence policy, where injury victims can recover compensation, even if they were 99% at fault. Florida has transitioned from a pure to a modified comparative negligence system. Plaintiffs over 50% at fault cannot recover damages, while those 50% or less at fault have their recovery reduced proportionally to their share of responsibility.
Reduced Statute of Limitations
The timeframe for filing negligence-based personal injury claims has been shortened from four years to two years. This applies to incidents occurring on or after March 24, 2023, emphasizing the importance of taking timely action.
Bad Faith Insurance Claims
Suing insurers for bad faith has become more challenging. Awards may now be adjusted based on the claimant’s degree of fault under a comparative bad faith approach.
Medical Damages and Deadlines
Stricter deadlines and documentation rules now apply to medical damages claims. However, the collateral source rule still allows plaintiffs to receive compensation from other sources without reducing their award.
Attorney Fees
A “strong presumption” favors calculating attorney fees without contingency multipliers, potentially limiting the total fee recoverable by plaintiffs. Incorporation of HB 837 helps plaintiffs in car accident lawsuit to manage a litigation cost-effectively.
Why HB 837 was incorporated?
Florida’s HB 837 was incorporated to reform Florida’s tort and insurance laws to reduce the chances of “frivolous lawsuits.” False litigations can increase stability of the insurance market and reduce additional time taken by courts to resolve car accident lawsuits that go to court. Here are some of the main reasons behind the incorporation of HB 837:
1. Reduce Litigation
Florida’s HB 837 aims to limit excessive lawsuits and streamline the legal process, thereby reducing the likelihood of prolonged litigation. Shortening of the statute of limitations saves excessive time, encourages earlier settlement, and results in fewer contested trials. This can lower the overall cost of litigation.
2. Stabilize the Insurance Market
An excessive number of personal injury claims stabilizes Florida’s insurance market by reducing the number of claims. Suppose 50% of the fault is barred from recovering damages, which reduces high risks or marginal claims. Additionally ,if additional litigation costs are reduced by helping with lower premiums, maintain financial stability, and improve access to coverage for policyholders across the state. Collective reforms can stabilize the overall insurance market.
3. Handle Bad Faith Laws
Incorporation of HB 837 has helped car accident lawyers to handle bad faith laws. This bill adjusted for bad faith actions against insurers, making it more difficult to prove bad faith solely based on negligence.
4. Curb Phantom Medical Expenses
The HB 837 bill introduced new rules and standards for evidence when proving past and future damages, in an effort to curb “phantom” medical expenses. Phantom billing is a form of healthcare fraud where a provider bills for services that were never actually performed.
How much can I seek for damages?
Florida’s HB 837 aims to limit excessive lawsuits and streamline the legal process, thereby reducing the likelihood of prolonged litigation. By shifting from pure to modified comparative negligence, plaintiffs who are more than 50% at fault cannot recover damages. This change discourages marginal or heavily faulted claims from proceeding to court.
Additionally, the shortened two-year statute of limitations for most negligence claims forces injury victims to act quickly, reducing the window for filing lawsuits. The bill also tightens rules on presenting medical expenses and attorneys’ fees, further limiting opportunities for disputes.
Overall, HB 837 encourages earlier settlements and fewer contested trials, thereby reducing the overall frequency of litigation.
How the Two Years Statute of Limitations Affects Your Claim?
Instead of four years, you will now have two years from the date of accident to file your claim. Any delay can cost you, your right to compensation. Missing the 2 years deadline can typically reduce your opportunity to recover damages. However, a few exceptions can apply. Knowing about the deadline of filing a claim, will help you act quickly and protect your claim.
Consider the following four fundamental factors, to protect your liability from others:
- Immediately report and document the incidents.
- Seek immediate medical care, even in case of minor injuries.
- Consult a car accident attorney to arrange all necessary documents properly.
- File your claim within a two-year deadline incorporated in your states.
Exceptions to Statue of Limitations
New statute of limitations incorporated under HB 837 is stricter, but can be subjected to certain exceptions. The following cases will be an exception to the deadline of 2 years:
- If the injured person is a minor.
- If the injured person is mentally unstable.
- If the defendant leaves the state.
Clear legal grounds are required to establish authentic evidences for the above-mentioned exceptions. That’s when an experienced car accident lawyer in Florida can ensure whether your particular condition will satisfy the above-mentioned exception categories.
How did this impact Medical Damages?
Florida continues to operate under the “No-fault Insurance System”. This means that after a car crash, your Personal Injury Protection (PIP) insurance covers your medical expenses and lost wages upto $10,000 regardless of who was at fault. PIP insurance have been introduced to reduce litigation for minor injuries and enhance the access to medical care.
However, you can step out of the PIP coverage if your damages are serious. Cases like permanent disability, wrongful death or significant scarring, allows Florida victims to step-out of the Florida PIP insurance against the at-fault sriver or other insurance party.
Does HB 837 amend standards of other lawsuits?
Yes, the HB 837 amends the standards of various other lawsuits, in addition to general negligence cases. Most importantly, the HB 837 impacts Bad Faith Claims by creating new safe harbors for insurers. It helps in shifting more responsibilities to claimants acting for good faith.
The amendment of HB 837 can clarify that negligence alone is not enough to prove bad faith. In such cases, our experienced car accident attorneys can evaluate how an insurance agency is navigating the bad faith claims.
A key change involves that if an insurer tends the lesser of the policy limits or the amount demanded within 90 days of receiving the claim with sufficient evidence, it may be immune from a bad faith claim.
How does HB 837 impact on evidence collection?
Evidence play a crucial role in determining whether a claim is subjected to compensation or not. Florida’s HB 837 introduces stricter rules to prevent inflated medical damage claims, ensuring that compensation receives actual costs. Here’s how the changes in evidence collection can be noted as follows:
Limits on Admissible Evidence: Plaintiffs can only present the actual amount paid for medical treatment, regardless of who paid it involving insurance, medicare, or the plaintiff.
No Use of Inflated Bills: The initial amount billed by medical providers cannot be used as evidence if a lower amount was actually paid.
Future Medical Expenses: Plaintiffs may present only the projected amount necessary to fully satisfy future medical bills, not speculative or inflated estimates.
Impact on Settlements: Insurance companies may attempt to undervalue claims based on these reduced figures, potentially lowering settlement offers.
What are the New Florida penalties for Bad Faith Insurance Denials?
HB 837 have incorporated stricter penalties for insurers who wrongfully deny valid claims. Stricter fines for insurers are likely to reshape Florida’s insurance market in the upcoming years.
Substantial penalties are charged to insurers for either denying valid claims or unjustly refusing to pay. An increase in stricter penalties not only help car accident victims, but also increase ethical operations with the insurance sector.
Here’s how incorporations of the new bill helps:
- Fines for bad-faith denials have increased significantly.
- Repeat offenders face stricter oversight and penalties.
- Insurers must now justify every claim denial in detail.
- Victims have clearer options to challenge unfair denials.
Does HB 837 Change anything about attorney fees?
Yes, HB 837 significantly impacts attorney fees are calculated and awarded in Florida injury cases. Here’s what has been changed:
Strong Presemption Fees
This law introduces a strong presumption that attorney fees should not include contingency multipliers, is a calculation method that previously allowed courts to increase attorney fees based on case difficulty or risk. This means plaintiffs’ attorneys may now receive lower overall fee recoveries, especially in complex or high-risk cases.
One-Way Attorney Free Provisions
The HB 837 limits one-way attorney free provisions, which previously required insurance companies to pay the plaintiff’s legal fees, if the plaintiff won. This change may reduce financial pressure on insurer and may make some smaller claims less cost-effective to pursue.
At Abercrombie, P.A. we cater to the changes related to attorney fees incorporated by HB 837. This helps us to streamline legal costs for our clients and assist them with basic and critical cases in a contingency basis.
Consequences for Real People
Personal injury victims are mostly affected from the amendment of HB 837. Although, incorporation of HB 837 had streamlined the legal process of car accident claims, it also imduces certain challenges. Here’s how the bill can impact the personal injury victims:
- A pedestrian injured by a distracted driver can now lose compensation, if the insurer convinces the jury that the pedestrian was 50% at fault.
- Change of statute of limitations from 4 years to 2 years might impose pressure on serious
- Victims have to navigate stricter evidence requirements and more aggressive insurace tactics, making it crucial to act fast and seek necessary legal assistance.
What mistakes car accident victims should avoid in 2025?
A single mistake by the victim can result into complete denial of compensation claim. Don’t let insurers manipulate you with the 50% at fault clause. Avoid these common pitfalls:
- Delay in medical care can indicate that you have presented false clinical severeness.
- Failing to gather evidence can prevent you from proving fault within stipulated time.
- Making casual statements of admitting fault, which can be used against you.
- Not maintaining the deadline within 2 years and still catering to the old 4 years timeframe.
How Abercrombie, P.A Can help?
At Abercrombie, P.A., our team brings years of experience in representing injury victims across the state. We understand how major legal changes like HB 837 can make an already challenging situation even more complex.
Our car accident attorneys are well-versed in Florida’s evolving negligence laws and ready to act swiftly on your behalf. From conducting detailed accident investigations to countering unfair fault claims, we work tirelessly to protect your rights and pursue full compensation.
With the new 50% fault bar and the statute of limitations reduced to two years, time is critical. If you or a loved one has been injured, don’t wait.
Contact us today to understand your options and safeguard your right to recovery.
