Tom Feeney, AIF: Defeat of 'Bad Faith' Reforms Disappointing

The following is Associated Industries of Florida President and CEO Tom Feeney's take on last week's legislative subcommittee defeat of the pro-business "bad-faith" reforms:

Associated Industries of Florida (AIF) is extremely disappointed that the House Civil Justice Subcommittee took a vote last week that effectively stopped any further legislative consideration this session for reforms to the insurer bad faith laws. The current system allows third parties to pierce the insurance contracts of individuals and businesses and force companies to settle claims expensively and without due investigation simply for the sake of avoiding further, more expensive litigation.

"These practices are contributing to ever-increasing claims cost, which ultimately make doing business in the state more expensive. Eight bipartisan members of the 15-member subcommittee voted against HB 427 by Rep. Kathleen Passidomo, R-Naples, which immediately halts its progress through this years legislative session. The bill sought to level the litigation playing field by requiring third-party, nonpolicyholder plaintiffs to go through the same notice requirements when bad faith actions are alleged thatpolicyholders must follow when they complain about their own insurance companies.

"Floridas business community is committed to doing everything it can to make Florida the premier destination for businesses to succeed. A major part of that effort is working with our elected officials to address areas in our jurisprudence that require attention. The reforms in HB 427 would have minimized the threat of gotcha style lawsuits and would have brought much-needed certainty to the process by codifying the same requirements for everyone.

"As our state battles its way out of this crippling recession, employers need legislators in the halls of the Capitol who will champion all legal reforms that businesses need to thrive in the state. AIF will continue to advocate for policies that will spur economic growth and bring fairness and predictability to our states legal system.

This is how subcommittee members voted on HB 427:

Voting in Favor

Rep. Eric Eisnaugle, R-Orlando.

Rep. Larry Metz, R- Eustis.

Rep. Bill Hager, R-Boca Raton.

Rep. Kathleen Passidomo, R-Naples.

Rep. Scott Plakon R-Longwood.

Rep. Kelli Stargel, R-Lakeland.

Rep. Mike Weinstein, R-Jacksonville.

Voting Against:

Rep. Matt Gaetz, R-Shalimar.

Rep. Shawn Harrison, R-Tampa.

Rep. Jose Oliva, R-Hialeah.

Rep. Rich Steinberg, D-Miami Beach.

Rep. Joe Abruzzo, D-Wellington.

Rep. Mack Bernard, D-West Palm Beach.

Rep. Marty Kiar, D- Davie.

Rep. Darren Soto, D-Orlando.