After Florida Supreme Court Workers’ Compensation Opinions Issued Today, Florida Office of Insurance Regulation Indicates Legislation May Be Forthcoming
Apr 28, 2016
The Florida Office of Insurance Regulation (“OIR”) advised today, April 28, 2016, that the Florida Supreme Court issued opinions in two cases with a potential impact on Florida’s workers’ compensation insurance rates.
In Castellanos v. Next Door Company, the Florida Supreme Court declared the statutory mandatory attorney fee schedule unconstitutional as a violation of due process under both the Florida and United States Constitutions.
Until the Florida Legislature addresses this decision, attorneys’ fees in workers’ compensation cases will be evaluated under the “reasonable” award standard articulated in the Murray v. Mariner Health decision, the OIR explained.
In today’s second case, Stahl v. Hialeah Hospital, the Florida Supreme Court decided not to hear the case and discharged jurisdiction. This means the First District Court of Appeal’s opinion in this matter (which upheld other elements of the workers’ compensation law) still stands.
The OIR described the impact on Florida’s workers’ compensation system as “unclear at this time” and said the agency will be working with the National Council on Compensation Insurance (“NCCI”) to assess the development. The NCCI files rates on behalf of Florida’s workers’ compensation insurers and other stakeholders.
“Our Office remains dedicated to putting Florida’s businesses and injured workers first,” Florida Insurance Commissioner Kevin M. McCarty said. “We have worked proactively over the years to bring workers’ compensation rates down for Florida’s employers. Limiting attorneys’ fees has been an important factor in reducing workers’ compensation rates. A legislative remedy will be required to prevent significant increases in rates and we look forward to working with all parties affected to bring about a sensible solution.”
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