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What is the Lawsuit Abuse Reduction Act?

In Florida Property Insurance, Insurance Companies, Insurance Rates, lawsuits, Property Damage, South Florida on November 28, 2012 at 1:32

What is the Lawsuit Abuse Reduction Act?  It’s a tort reform bill, designed to reduce frivolous and fraudulent lawsuits. It hits every form of law – from personal injury to intellectual property to real property.

Filing frivolous lawsuits cost money.  The city of San Diego estimated that frivolous suits cost the city $17 million.  Here in South Florida, with a 40 per cent higher population, and more inclination to natural disasters and property damage, the tendency to file a lawsuit ‘just to see what we can get’ is even higher.

The state of Florida is well supplied with attorneys ready to file frivolous lawsuits, and well stocked with people who think they will get rich quickly by hitting the proverbial jackpot.  With that said, each time you file a frivolous lawsuit, you might think no harm is being done because your lawyer is working on a contingency, but that is wrong.  Instead, you are probably costing yourself, your family, your friends and your neighbors money.  Why?  Because you are driving up insurance rates as insurance companies defend increasingly meritless lawsuits.  Insurance companies may have deep pockets because they are legally mandated to keep large reserves on hand, but they are not in the habit of writing checks for frivolous lawsuits.

Everyone cares. Insurers can’t help those in need if they are consistently dealing with those who take advantage.

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