Eliminating one-way attorney fees shifts the litigation landscape, prompting firms like Morgan & Morgan to scale back
A quiet but notable change is taking shape within one of the most recognizable law firms in the nation. Morgan & Morgan, known for its massive advertising presence and slogan “For the People,” is pulling back on its once-thriving insurance litigation practice. The move comes in response to sweeping property insurance reforms passed by the Florida Legislature in 2022 and 2023. Among the most impactful changes was repealing the one-way attorney fee statute, which was a financial cornerstone for plaintiff attorneys in insurance lawsuits.
The Tampa Bay Business Journal reports that once staffed with over 30 attorneys handling homeowner and hurricane insurance cases, the firm now maintains just five lawyers in that area. Firm founder John Morgan said the end of guaranteed legal fee recovery for plaintiffs makes many cases less viable. “I don’t want to be the lawyer who has to tell a client we won the case, but you still walked away with less than you needed to fix your home,” he remarked.
Reforms changing the legal incentives
The Florida reforms, especially eliminating one-way attorney’s fees, already have ripple effects. Under the former system, policyholders who recovered any amount in court could have their legal fees paid by the insurer. Critics, including state lawmakers and Governor DeSantis, argued this encouraged frivolous litigation and drove up insurance costs statewide.
Once at the forefront of this litigation niche, John Morgan now says he sees little incentive to rebuild that business side. He blames ongoing fraud among third-party adjusters and contractors and calls for deeper reform in those areas. Meanwhile, trial lawyers pushed for a “loser pays” proposal, shifting legal fees to the losing party, but that bill failed to pass in the most recent legislative session.
Legal advertising and certification under scrutiny
The transformation in insurance litigation is also being fueled by other industry shifts. According to a recent brief from the Insurance Information Institute (Triple-I), there’s a strong link between aggressive legal advertising and rising insurance premiums. Television ads promoting lawsuits rose 44% since 2017, while radio placements surged 261% over the same period. The report points to third-party litigation funding as a driver of this explosion, with such funding now estimated to hold $16 billion in assets.
In a parallel development, the Florida Bar is preparing to launch a new board certification in “Insurance Coverage Law.” The designation, supported by both plaintiff and defense attorney groups and consumer advocates, aims to improve public access to qualified counsel in navigating complex insurance claims, especially after natural disasters. The Bar’s Board of Governors is expected to vote on the proposal in September.
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