CFO Patronis: Attorney Fee Limits 'Good Debate to Have'
The Legislature should consider restricting how much insurance companies can spend on attorney fees when fighting workers' compensation claims, state Chief Financial Officer Jimmy Patronis said.
January 19, 2018 at 02:58 PM
4 minute read
The Legislature should consider restricting how much insurance companies can spend on attorney fees when fighting workers' compensation claims, state Chief Financial Officer Jimmy Patronis told The News Service of Florida.
The House two weeks ago passed a bill that would limit plaintiffs' attorney fees to $150 an hour and reduce amounts paid to hospitals and ambulatory surgical centers for treating injured patients.
Patronis, a Panama City restaurateur who was appointed state CFO by Gov. Rick Scott last summer, said he knows firsthand how workers' compensation insurance costs can impact employers and appreciates the benefits of affordable rates.
“It gave me greater flexibility. It made me feel like I didn't have to contract out labor. I could hire my own people,” he said. “So the proposal of limiting those overhead costs that can go to the ownership of the policy, I think that's good for business.”
While the House bill (HB 7009) would restrict attorney fees for injured workers, it does not impose the same limits on insurance companies that hire lawyers to fight the claims.
When asked whether the restrictions should apply to insurers, Patronis said, “I think two-way attorney fees [restrictions] is a good debate to have.”
A recent report from the Office of the Judges of Compensation Claims showed that legal fees in the workers' compensation system totaled nearly $440 million during the 2016-17 fiscal year. The majority — nearly $254 million — was spent challenging workers' compensation claims.
Workers' compensation is a no-fault system meant to protect workers and employers. It is supposed to provide workers who are injured on the job access to medical benefits they need to be made whole. Those who are injured for at least eight days also are entitled to indemnity benefits, or lost wages. In exchange for providing those benefits, employers generally cannot be sued in court for causing injuries.
While the system is supposed to be self-executing, injured workers hire attorneys when there are disputes over the amounts of benefits they should receive.
Senate President Joe Negron, R-Stuart, has repeatedly said over the past two years that attorney fees should be kept low, regardless of whether they are for representation of injured workers or insurers, and he reiterated that position last week.
“When I talk to employers, they don't care if it's plaintiffs' fees or defense fees,” Negron said. “They only want to pay attorneys' fees that are necessary in the system. We want them to be as low as possible across the board.”
Businesses have pushed the Legislature to pass a workers' compensation bill that would restrict plaintiffs' attorney fees since 2016, when the Florida Supreme Court ruled that long-standing fee caps were unconstitutional.
The National Federation of Independent Business-Florida opposes a move to cap what insurance companies can spend defending claims. NFIB Executive Director Bill Herrle said insurance companies use attorneys only after injured workers challenge decisions, which he called the beginning of the “cost cycle.”
“There's no chicken-and-egg quandary here,” he said.
The Senate does not have a companion measure to the House bill, but it is pursuing other workers' compensation issues, including a proposal that would help first responders who suffer from post-traumatic stress disorder receive workers' compensation benefits.
In Florida, injured workers are prevented from obtaining workers' compensation benefits — either medical benefits or lost wages — for mental or nervous injuries not accompanied by physical injuries. The law was changed in 2007, though, to allow first responders to obtain medical benefits for PTSD without having accompanying physical injuries.
However, they still are precluded from obtaining lost wages for PTSD. The Senate proposal (SB 376) would allow first responders to receive a percentage of their lost wages as a result of the PTSD.
Though a similar bill has been filed in the House, it hasn't been heard. The proposal is opposed by the Florida League of Cities, which contends it would increase the costs of workers' compensation benefits that would have to be absorbed by taxpayers.
Patronis has come out in favor of the legislation.
“We're aggressively pursuing expansion of benefits to our first responders,” he said adding that the benefit is “long overdue.”
“That particular profession has an abnormally high suicide rates. It's time that we act,” he said.
Christine Sexton reports for the News Service of Florida.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
NOT FOR REPRINT
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View AllBig Law Practice Leaders 'Bullish' That Second Trump Presidency Will Be Good for Business
3 minute readBig Law Leaders, Dealmakers Optimistic About M&A Deal Flow Under Trump, With Caveats
5 minute readTrending Stories
- 1Infant Formula Judge Sanctions Kirkland's Jim Hurst: 'Overtly Crossed the Lines'
- 2Election 2024: Nationwide Judicial Races and Ballot Measures to Watch
- 3Guarantees Are Back, Whether Law Firms Want to Talk About Them or Not
- 4How I Made Practice Group Chair: 'If You Love What You Do and Put the Time and Effort Into It, You Will Excel,' Says Lisa Saul of Forde & O'Meara
- 5Abbott, Mead Johnson Win Defense Verdict Over Preemie Infant Formula
- 6How Much Does the Frequency of Retirement Withdrawals Matter?
Who Got The Work
Michael G. Bongiorno, Andrew Scott Dulberg and Elizabeth E. Driscoll from Wilmer Cutler Pickering Hale and Dorr have stepped in to represent Symbotic Inc., an A.I.-enabled technology platform that focuses on increasing supply chain efficiency, and other defendants in a pending shareholder derivative lawsuit. The case, filed Oct. 2 in Massachusetts District Court by the Brown Law Firm on behalf of Stephen Austen, accuses certain officers and directors of misleading investors in regard to Symbotic's potential for margin growth by failing to disclose that the company was not equipped to timely deploy its systems or manage expenses through project delays. The case, assigned to U.S. District Judge Nathaniel M. Gorton, is 1:24-cv-12522, Austen v. Cohen et al.
Who Got The Work
Edmund Polubinski and Marie Killmond of Davis Polk & Wardwell have entered appearances for data platform software development company MongoDB and other defendants in a pending shareholder derivative lawsuit. The action, filed Oct. 7 in New York Southern District Court by the Brown Law Firm, accuses the company's directors and/or officers of falsely expressing confidence in the company’s restructuring of its sales incentive plan and downplaying the severity of decreases in its upfront commitments. The case is 1:24-cv-07594, Roy v. Ittycheria et al.
Who Got The Work
Amy O. Bruchs and Kurt F. Ellison of Michael Best & Friedrich have entered appearances for Epic Systems Corp. in a pending employment discrimination lawsuit. The suit was filed Sept. 7 in Wisconsin Western District Court by Levine Eisberner LLC and Siri & Glimstad on behalf of a project manager who claims that he was wrongfully terminated after applying for a religious exemption to the defendant's COVID-19 vaccine mandate. The case, assigned to U.S. Magistrate Judge Anita Marie Boor, is 3:24-cv-00630, Secker, Nathan v. Epic Systems Corporation.
Who Got The Work
David X. Sullivan, Thomas J. Finn and Gregory A. Hall from McCarter & English have entered appearances for Sunrun Installation Services in a pending civil rights lawsuit. The complaint was filed Sept. 4 in Connecticut District Court by attorney Robert M. Berke on behalf of former employee George Edward Steins, who was arrested and charged with employing an unregistered home improvement salesperson. The complaint alleges that had Sunrun informed the Connecticut Department of Consumer Protection that the plaintiff's employment had ended in 2017 and that he no longer held Sunrun's home improvement contractor license, he would not have been hit with charges, which were dismissed in May 2024. The case, assigned to U.S. District Judge Jeffrey A. Meyer, is 3:24-cv-01423, Steins v. Sunrun, Inc. et al.
Who Got The Work
Greenberg Traurig shareholder Joshua L. Raskin has entered an appearance for boohoo.com UK Ltd. in a pending patent infringement lawsuit. The suit, filed Sept. 3 in Texas Eastern District Court by Rozier Hardt McDonough on behalf of Alto Dynamics, asserts five patents related to an online shopping platform. The case, assigned to U.S. District Judge Rodney Gilstrap, is 2:24-cv-00719, Alto Dynamics, LLC v. boohoo.com UK Limited.
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250