The Importance of Pre-Litigation in Florida
Pre-litigation is a critical phase in Florida for first-party insurance claims, particularly those involving property damage or similar disputes. Many individuals assume that filing a lawsuit is the first step after their insurance company denied or underpaid their claim. However, Florida law requires certain steps before filing a lawsuit.
For example, under Florida Statute 627.70152, insurers must be provided with a notice of intent to initiate litigation. This gives the insurer an opportunity to settle the claim before a suit is filed. Failure to follow these pre-litigation requirements can result in dismissal of the lawsuit or other procedural issues. Furthermore, pre-litigation efforts, such as negotiation, mediation, or appraisal, often lead to faster resolutions compared to lengthy court proceedings.
What is Pre-Litigation?
Pre-litigation starts with a thorough assessment of the case. During pre-litigation phase, policyholders and their attorneys can gather evidence, hire experts, and document damages to present a strong case to the insurer. This phase allows for refining the demand letter and clarifying coverage issues, increasing the likelihood of a favorable settlement.
In Florida, pre-litigation includes filing certain required notices, engaging in good-faith negotiations, and even attending mediation sessions. The pre-litigation process aims to minimize the time, cost, and risks associated with litigation. It also allows both parties to examine the merits of their case, evaluate possible outcomes, and potentially reach a settlement without enduring a full-scale trial. Settling in pre-litigation reduces financial risks for both parties and eliminates the uncertainty of a court decision.
Handling disputes efficiently in pre-litigation builds trust between the attorney and client, demonstrating a commitment to resolving the matter without unnecessary litigation. In cases where litigation is inevitable, the pre-litigation phase will have built a strong relationship between the attorney and their client ahead of the long process of litigation.
Compliance with Alternative Dispute Resolution (ADR) Processes During the pre-litigation phase:
Florida often encourages or requires ADR methods, like mediation or appraisal, before litigation. This fosters good faith negotiations and can lead to resolution without escalating the dispute. Courts may look unfavorably on parties that skip or undermine pre-litigation dispute resolution efforts.
Benefits of Pre-Litigation
Handling disputes efficiently in pre-litigation builds trust between the attorney and client, demonstrating a commitment to resolving the matter without unnecessary litigation.
*This blog is an opinion piece and does not constitute legal advice. If you need help with your specific claim, reach out for a free evaluation.