RumbergerKirk says tort reform changed rules but good faith remains standard

RumbergerKirk announced that partner Brett Carey highlighted in ClaimsJournal.com that while tort reform may have changed the rules, good faith remains the standard in insurance claims handling, according to a post on X.

According to ClaimsJournal.com, Florida’s House Bill 837, enacted in 2023, revamped the state’s bad-faith litigation rules—particularly by introducing a 90-day "safe harbor" for insurers who tender policy limits or demand amounts within that time frame after receiving notice with sufficient evidence. The report emphasizes that the central duty of good faith in claims handling remains untouched despite procedural reforms, as insurers are still legally required to act honestly and fairly toward insureds. Carey’s commentary underlines that while tort reform may have changed the rules, it has not changed the foundational requirement of good faith in the process.

ClaimsJournal notes that HB 837’s new 90-day safe harbor protects insurers from bad-faith suits if they pay the lesser of policy limits or the claim demand within 90 days of receiving notice accompanied by sufficient evidence. The article explains that "sufficient evidence" may include medical records, bills, police or repair estimates, and that until such evidence is received, the safe harbor does not begin. This contractual structure reinforces that insurers must maintain rigorous documentation and procedural compliance, ensuring good faith in claim adjudication.

As detailed by RumbergerKirk’s own analysis, HB 837 codifies the principle that mere negligence doesn’t meet the threshold for bad faith—requiring conduct that is deliberate or dishonest before liability attaches. It also authorizes courts to weigh the conduct of all involved parties, including claimants, insureds, and their attorneys, ensuring that good faith is a mutual obligation in the dispute resolution process. Carey stresses that this shift promotes fairness in litigation by shielding insurers from punitive claims based solely on errors while holding all parties to a shared standard of honesty.

RumbergerKirk was founded in 1978 by E. Thom Rumberger, Bud Kirk, and Dick Caldwell. It is a Florida and Alabama law firm specializing in litigation and counseling for commercial insurance coverage and bad faith defense, product liability, employment construction, and professional liability matters. According to the firm’s LinkedIn profile, it comprises approximately 98 attorneys and practices in over 20 legal areas across multiple offices including Orlando Tampa Miami Tallahassee and Birmingham. The firm is known for high-caliber advocacy and strategic counsel for regional and national corporate clients.