As a construction association executive who works every day with the contractors who do, I understand how critical predictability is. It affects whether projects get financed, whether insurance is available at a reasonable cost, and whether businesses are willing to take on risk. That is why Florida’s recent legal reforms mattered, and why the state should build on that progress rather than undo it.
Efforts to roll back tort reforms would move Florida in the wrong direction. At the same time, proposals like SB 1396 and HB 1157, which address abusive third-party litigation financing, represent a smart and necessary next step.
Florida should be moving forward, not backward.
Both the data and what we see on the ground point to the same conclusion. Lawsuit filings are down. Insurance markets are beginning to stabilize. Contractors are once again able to bid work based on real construction risk instead of pricing in the fear of endless litigation.
That matters enormously in fast-growing regions like Tampa Bay, where demand for housing and infrastructure is strong but margins are tight. Legal reform helped restore balance to a system that had tilted too far toward abuse. Rolling those reforms back would reopen the door to the very problems Florida worked hard to fix.
One area that still needs attention is third-party litigation financing. These arrangements allow outside investors, often hedge funds with no connection to Florida, to fund lawsuits in exchange for a share of the outcome.
In construction, the impact is easy to see. Claims that should be resolved through normal dispute processes turn into drawn-out, expensive battles. Settlement demands rise, not because the case is stronger, but because investors are chasing outsized returns. Projects get delayed. Costs rise. Everyone pays the price.
That is not access to justice. It is financial speculation using the court system.
SB 1396 and HB 1157 would bring much-needed transparency and oversight to third-party litigation financing. They require disclosure of funding arrangements so courts can see who is actually driving a lawsuit and who stands to profit from it.
For contractors, developers and property owners, that transparency matters. It allows disputes to be evaluated on their merits, not distorted by hidden financial interests. It also helps judges manage cases more effectively and discourages inflated claims designed to satisfy investors instead of resolving real issues.
These bills do not block legitimate lawsuits. They do not shield bad actors. They simply recognize that when outside money enters the courtroom, sunlight should follow.
Unchecked litigation financing drives up costs across the system. Greater legal exposure leads directly to higher insurance premiums. Those premiums get passed along in construction bids, which means higher costs for housing, infrastructure and commercial development.
In Tampa Bay, that has real consequences:
- Condo projects become harder to finance or insure
- Infrastructure work faces costly delays
- Small and mid-sized contractors walk away from projects they cannot afford to litigate
When fewer builders can compete, prices rise. When projects stall, communities lose.
Florida’s legal reforms never eliminated accountability. Contractors are still responsible for defective work. Legitimate claims still move forward. What reform did was reduce the incentive to manufacture disputes and chase jackpot verdicts.
SB 1396 and HB 1157 support that same goal. They reinforce fairness by ensuring lawsuits are driven by facts and law, not by investment strategies.
Florida’s economy depends on building homes people can afford, infrastructure communities rely on, and projects that create jobs. That requires a legal environment that is stable, transparent and fair.
Rolling back tort reforms would put that progress at risk. Strengthening oversight of third-party litigation financing would protect it.
Florida took an important step when it reined in lawsuit abuse. Lawmakers should stay the course, support transparency, and make sure our courts serve justice, not outside investors looking for their next return.
Author: Steve Cona III, President/CEO in the Building Industry
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