Legal partner: House Bill 1551 'brings back the old law with all of its consequences'

Matthew Lavisky, a partner at Butler Legal, said that House Bill 1551 reintroduces the fee-shifting framework previously eliminated under Senate Bill 2A, which will reignite litigation-driven pressures on Florida's insurance market. This statement was made in a press release on March 18.

"There is no difference between the law under Danis and House Bill 1551," said Lavisky. "House Bill 1551 brings back the old law with all of its consequences. Sometimes, a bill comes clad in sheep's clothing. But to borrow words from Justice Scalia, ‘this wolf comes as a wolf. The lure of a court-awarded attorney's fee under the old law (and House Bill 1551) often incentivized the lawyer to put their own interest ahead of their client's and prolong litigation."

House Bill 1551, introduced in the Florida Legislature, proposes awarding attorney fees to the prevailing party in insurance litigation, effectively reinstating provisions that were eliminated by Senate Bill 2A in 2022. According to Insurance Business Magazine, industry leaders have expressed concerns that this reversal could lead to increased litigation costs and destabilize the insurance market. The bill has sparked debate among stakeholders about its potential impact on both insurers and policyholders.

Senate Bill 2A, enacted in December 2022, was a comprehensive reform aimed at stabilizing Florida's property insurance market. The Florida Senate's summary of the bill highlights that it eliminated one-way attorney fees, prohibited the assignment of post-loss insurance benefits, and established the Florida Optional Reinsurance Assistance program to aid insurers. These measures were designed to reduce frivolous litigation and promote a more balanced insurance environment.

Florida Insurance Commissioner Michael Yaworsky reported significant progress in stabilizing the state's insurance market following the implementation of Senate Bill 2A. In a press release from January 2025, Yaworsky emphasized that the reforms had led to a more competitive environment and tangible benefits for consumers. He noted that these improvements were achieved despite challenges such as inflation and multiple storm events.

Matthew J. Lavisky is a partner at Butler Weihmuller Katz Craig LLP, specializing in the defense of bad faith and other extra-contractual matters, first-party property claims, class actions, and insurance coverage disputes. According to his firm profile, Lavisky represents insurers in both state and federal courts across Florida and other states. He has been recognized for his leadership in the field, having been elected President of the Florida Defense Lawyers Association in June 2023.