Month: April 2023

Why Legal Services & Legal Insurance Plans Are The Future

Even though pre-paid legal services have been around nearly 50 years, legal insurance and/or legal services plans are growing as well as their consumer or member base and provide access to attorneys for legal assistance, including drafting and reviewing documents and consultation or representation in court for many common legal matters. It is also called group legal or pre-paid legal. This type of plan or insurance is most often included as part of a workplace benefits package. Employees can choose to opt for a legal services plan or legal insurance for which they will pay a set monthly premium or yearly fee and have access to experienced attorneys.

Employment of lawyers is projected to grow about 9-10 percent from today to 2031, about as fast as the average for all occupations. There is still a high demand for lawyers in the United States. Demand for legal work is expected to continue as individuals, businesses, and all levels of government require legal services in many areas according to the U.S. Bureau of Labor Statistics.

Reasonable access to adequate and affordable legal services like health care has become a necessity of life.

Still, the majority of Americans do not have access to affordable legal services. When the World Justice Project measured the accessibility and affordability of civil justice in 113 countries around the world in 2017, the United States tied for 94th place with Cameroon, Uganda, and Zambia. This rating measured whether “ordinary people” could resolve their grievances affordably in the U.S. justice system. This measure showed how widespread the problem is regarding affordable legal services. Contrary to popular belief, it is not just low-income people who cannot afford or have access to legal services but rather includes an estimated 60 percent of the legal needs of middle-income people that are not being met.

Legal insurance and legal service plans are a solution that many employers are using to provide their employees access to legal services for a reasonable price.

These legal insurance or services plans connect people with attorneys who can offer a wide range of legal services, from telephone advice to court representation. These plans use a network of attorneys who have agreed to provide services as part of their contract with the organization selling the plan or insurance to its members. There is always a free initial consultation and later, when retaining the attorney, there are typically no bills or there is a set discounted fee provided the plan member or prospective client who uses a network or panel attorney. 

Legal insurance often covers a wide variety of legal issues, covering nearly everything except workplace matters or business matters. A legal plan or legal insurance will likely come in handy during most situations where legal issues arise.

Historically, Americans have come to think of the legal system as a highly undesirable and expensive final option, and something to be used only when all other viable solutions have been exhausted. One American Bar Foundation study found that only 24 percent of people with civil justice problems used an attorney. According to the Social Science Research Network-these were people dealing with “troubles that emerge at the intersection of civil law and everyday adversity, involving work, finances, insurance, pensions, wages, benefits, shelter, and the care of young children and dependent adults, among other core matters.”  In other words, they were dealing with everyday legal matters that could almost always benefit from an attorney’s guidance, yet attorneys were not hired nor even consulted. Another study found that manypeople are going online and trying to manage these issues alone instead of working with a professional. This is a major concern for several reasons, including that it means people are not getting the best legal outcomes, and when people represent themselves, it slows down the process of the already struggling courts and justice system.

Cost is another significant factor that prevents consumers from working with attorneys. Many working-class Americans believe they cannot afford or may lose money even if they win by retaining an attorney.

Legal insurance and legal services plans remove many of the barriers between attorneys and potential clients. Since the legal plans are aware that consumers are looking online for legal information, they provide online resources that educate legal plan members on the importance of working with an attorney. They guide them through the process of connecting with an attorney so that they become more comfortable using attorneys for a wide variety of legal issues. The foregoing promotes the use of attorney services without increasing the burden on attorneys to be more accessible to clients.

Finally, the most important aspect is that legal plans help overcome financial barriers by standardizing the cost for individuals. For a monthly or yearly premium, the members get access to network or plan attorneys when they require legal assistance.

Attorneys also benefit from more people having legal insurance or legal services plans since the consuming public are more likely to use an attorney’s services instead of trying to resolve an issue on their own.

With employees getting the legal support that they require; employers have found they are more productive and less stressed. In turn, this situation improves the employer’s bottom line and helps them recruit and retain the type of high-caliber workforce they desire.

The impact of affordable legal services extends beyond the corporate world, it affects all areas of a community.

The satisfaction of legal services and legal insurance plan members with employers who offer said benefit and attorneys who participate in the network is outstanding. However, the reason the use of these plans is NOT widespread is since many are not aware of what legal insurance or legal services plans are or that they even exist.

If more residents of Florida or even of the U.S. become aware that legal insurance and/or legal services plans are an option for them, and more attorneys realize the benefits and join legal plan networks, perhaps in the future the nation will see its ratings for access to affordable civil justice rise from the bottom of the list to the top, near countries like Germany, Denmark and the Netherlands, which are countries that offer, support and promote access to legal services.

Even if an individual or family do not anticipate any legal problems or the need for an attorney, ensuring that one has some legal protection should the need arise is invaluable. Further, it is worth noting that not every legal issue involves a conflict, often it proves beneficial to have a lawyer on one’s side to guide them through complex documents or agreements.

If an employer offers legal insurance or legal services plan as part of their employee benefits package, it could end up saving a substantial amount of money and anxiety.

The foregoing is a very brief and general overview of the benefits of having a legal services or legal insurance plan in Florida.

If you have any additional Questions regarding the foregoing or have any legal issue or concern, please contact the law firm of CASERTA & SPIRITI in Miami Lakes, Florida.

CREATING A BUSINESS ENTITY MAY BE BENEFICIAL

Establishing a business entity for any type of business endeavor can be a positive move in that it provides liability protection, allows for the expensing of debts and better accounting for the same. For business owners, it is often beneficial to form an entity for some or all of the following reasons: Liability Protection, Tax Savings/tax deductions, Credibility, Formality, Perpetual Duration, Control Over the Transfer of Ownership, which also allows the raising of capital by the selling shares of the subject company, and/or Confidentiality.

Florida and Delaware are two of the best options where one can incorporate their business. These states have business, tax, and privacy laws that are beneficial for business.

As for liability protection, the law allows entrepreneurs to form corporations, LLCs as well as other legal entities as a shield against personal liability. Individual owners and officers or members are considered separate from their corporations or LLCs. When a corporate or business debt is owed, creditors can pursue the company but not the individuals operating the said company. Unless the corporate form is abused, misused or monies are comingled, owners and operators of said entity are personally protected. However, when business formalities are not followed then creditors can pierce the corporate veil and go after the subject individuals under the alter ego doctrine. Examples of the foregoing include, but are not limited to, commingling corporate and personal funds, disposing of corporate formalities, diverting corporate assets for personal use, etc., can open up a business entity to potential alter ego claims and thereby hold the owners and operators to personal liability.

Further, different entities cannot be held jointly and severally liable for a breach of contract case merely because the two have the same officers, members, owners or the same physical address or email or telephone.

For the most part, unless an individual is an actual party to a contract that individual may not sue or be sued for breach of said contract, particularly when that non-party has at most received only an incidental benefit from the subject contract. For instance, a parent company which is not a party to the said contract can be held liable for its subsidiary’s breach of the contract only when it can be shown or proven to be an alter ego of the parent and was in place merely to mislead the parent’s creditors. Business impropriety should not be presumed by the mere fact that the two entities share a physical address or office or an officer, director, or member.

The foregoing is a very brief and general overview of the benefits of forming a business entity in Florida.                                                                                                       

If you have any additional Questions regarding the foregoing or have any legal issue or concern, please contact the law firm of CASERTA & SPIRITI in Miami Lakes, Florida.

EASTER HOLIDAY-A LITTLE HISTORY & A LITTLE LAW

Easter, which falls on the first Sunday following the first full moon after the March equinox, celebrates Jesus Christ’s resurrection from the dead three days after his crucifixion. While primarily a Christian holiday, like Christmas, it has also become a cultural celebration centered around brightly decorated eggs, chocolate, candy, scavenger hunts, baskets, chicks, and rabbits.

While the following day, Easter Monday, which is also known as “Bright Monday” or “Renewal Monday,” is a public holiday throughout most of the world, however, it is not the case in the United States. It was a public holiday in North Carolina from 1935 to 1987.  Many public schools and universities are closed on Easter Monday, and often Good Friday as well, falling under the umbrella of spring break.

Easter Monday is a public holiday in 116 nations throughout the world, including Australia, Austria, Germany, Egypt, Ireland, United Kingdom, Spain, Ghana, Fiji, France, Hong Kong, Italy, Kenya, Poland, Russia, and South Africa. However, not all observations are directly centered around the Christian tradition. In Ireland, it is a day of remembrance for the people who died during the Easter Rising or Rebellion in 1916. In Egypt, the ancient festival of Sham El Nessim, which means “smelling of the breeze,” falls on the same day, marking the beginning of spring.

Some nations even recognize Easter Tuesday, including Cyprus, as a national bank holiday; New Zealand allows a mandatory holiday in the public education sector, and the Australian island state of Tasmania recognizes a legal holiday for some workers.

Easter is a religious holiday derived from two ancient traditions: one Judeo-Christian and the other Pagan. Both Christians and Pagans have celebrated death and resurrection themes following the spring equinox for millennia. Most religious historians believe that many elements of the Christian observance of Easter were derived from earlier Pagan celebrations.

In Christian religion, Good Friday is observed in remembrance of Jesus’s execution by the occupying Roman army, and his burial in a cave-tomb. Easter Sunday is the date when a group of his female followers first noticed the empty tomb and concluded that he had been resurrected.

Other countries around the world, however, do acknowledge the holiday, and even though it is not a federal holiday in the U.S., the White House traditionally hosts its annual Easter egg roll and other celebrations for Easter on the Monday following the holiday.

Easter is not a federal holiday due to the fact that it always falls on a Sunday, which is a non-working day for federal and state employees. Many companies which are normally open on Sunday close for Easter.

Again, Good Friday and Easter Monday are not Federal Holidays. All federal holidays are non-religious other than Christmas Day.

On a local level, the day is informally observed in some areas such as the state of North Dakota, and some cities in New York, Michigan, and Indiana.

Good Friday is a state holiday in 10 states-Connecticut, Delaware, Florida, Hawaii, Indiana, Kentucky (half-day), Louisiana, New Jersey, North Carolina, North Dakota, Tennessee, and Texas. It is an optional holiday in Texas.

Good Friday is an important Christian holiday celebrated two days before Easter Sunday, commemorating the crucifixion of Jesus. However, it is not a federal holiday in the United States. That means post offices and most governmental offices will be open.

In the United States, a federal holiday is one that is recognized by Congress and is designated in Title V of the U.S. Code 6103 – Holidays, which allows Congress the authority to create holidays for federal institutions.

Pursuant to 5 U.S.C. 6103(b), if a holiday falls on a Sunday, for most Federal employees, the following Monday will be treated as a holiday for pay and leave purposes.

Easter Monday is a holiday in many English-speaking countries, including England, Wales, Northern Ireland and Australia, and European counties. The tradition of having a holiday on the day after Easter Sunday was brought to Canada by European immigrants.

The earliest recorded observance of an Easter celebration comes from the 2nd century, though the commemoration of Jesus’s Resurrection probably occurred earlier.

Easter, supposed to be the date that Jesus died and then arose from the dead, but has no fixed date. Easter is religious and is set as the “first Sunday after the first full moon after the spring equinox”.

The most common date for the Western churches’ Easter is April 19th. The earliest Easter can be is March 22nd, and the latest it can fall is April 25th. This year it is April 9th, 2023.

The tradition of setting it by the moon and the spring equinox, instead of a set date in the calendar was a classic religious tradition carried out by the Council of Nicaea in 325 to sort out a problem caused by distinct parts of the Christian world marking Easter on different days.

They set it to be the first Sunday after the first full moon-on or after the vernal or spring equinox.

It was the United Kingdom where this all came to a head, when in the year 664, King Oswiu in the kingdom of Northumbria, brought up on Celtic traditions celebrated Easter on one day, while his wife, who had been brought up in Catholic traditions was celebrating Easter on a different day.

For the King to have an Easter feast while the wife is still marking Lent was somewhat of a problem, and the King decided to sort it out, summoning religious leaders to a Synod, a meeting, to settle the problem.

St. Colman, Bishop of Lindisfarne, put the case for the Celtic tradition, while St. Wilfrid, Bishop  of York, put forward the Catholic argument and won.  The King switched to the Catholic method of working out when the Easter fell.

Consequently, Easter still wobbles around the calendar. Not all Christian countries follow the Gregorian calendar, which was introduced by Pope Gregory in 1528, and countries that use the older Julian calendar celebrate Easter on a different date, although every few years, the two calendars align and celebrate Easter on the same day. The next time that will happen will be April 20th, 2025.

Historically, 400 years after the Gregorian calendar was introduced, the United Kingdom became interested in settling the Easter date, and on August 3rd, 1928, passed “An Act to regulate the date of Easter Day and days or other periods and occasions depending thereon”,  known as the Easter Act.

That did not come out of nowhere since the League of Nations, the precursor to the United Nations, had passed a resolution in 1926 calling for the date of Easter to be sorted out.

Easter would still wobble a bit, but far less than it does today and more usefully would no longer be bound by the vagaries of the moon. The effect of the act would be to establish Easter Sunday as the Sunday following the second Saturday in April, so fixed by the calendar, not the moon, and resulting in Easter Sunday being between April 9th and April 15th. The act of law has Royal Assent but has never been enforced, as it requires both Houses of Parliament to pass resolutions agreeing on when to start enforcing the law.

Eggs represent new life and rebirth, and it is believed that this ancient custom became a part of Easter celebrations. In the medieval period, eating eggs was forbidden during Lent, i.e., the 40 days before Easter, therefore on Easter Sunday, indulging in an egg was a real treat!

According to Discovery News, since ancient times, eggs and rabbits have been a symbol of fertility, while spring has been a symbol of rebirth. Even though rabbits do not lay eggs, the association of these symbols was almost natural.

In Germany in the 1700’s, children would build nests, and leave carrots out for the “Osterhase” or “Oschter Haws”, i.e., the Easter bunny. Legend has it that the Easter Bunny lays, decorates and hides eggs for good children, as they are also a symbol of new life.

According to some sources, the Easter bunny first arrived in America in the 1700’s with German immigrants who settled in Pennsylvania and transported their tradition of an egg-laying hare.  Their children made nests in which this creature could lay its colored eggs.

The foregoing is just a brief and general legal and historical overview of Easter. 

If you have any additional Questions regarding the foregoing or have any legal issue or concern, please contact the law firm of CASERTA & SPIRITI in Miami Lakes, Florida.

Major Changes to Florida Tort & Bad Faith Laws in 2023

Florida Governor DeSantis signed HB 873 into law on March 24, 2023, which resulted in significant changes to Florida’s tort and bad faith laws. These changes were part of a movement by the Republican party in Florida allegedly “to decrease frivolous lawsuits and prevent predatory practices of trial attorneys who prey on hardworking Floridians.” The changes brought forth by this bill took effect once it was signed into law on March 24, 2023.

Several statutes that regulate negligence actions were revised in an effort to reduce large verdicts which have been on the rise across Florida. For instance, the statute of limitations for negligence actions accruing after the effective date of the subject statute was reduced from four (4) years to two (2) years, i.e., Florida Statute § 95.11. The most significant change was to the comparative fault statute, which now states that a claimant who is greater than 50% at fault for his or her own injuries cannot recover any damages pursuant to Florida Statute § 768.81. However, this comparative fault change does not apply to medical malpractice actions.

Florida Statute § 768.0427 was added to provide new guidelines for the admission of evidence related to past and future medical expenses in a negligence action. This statute provides that “Evidence offered to prove the amount of damages for past medical treatment or services that have been satisfied is limited to evidence of the amount actually paid, regardless of the source of payment.” It also states that proof of unpaid medical treatment can be shown by what the party’s healthcare provider was contractually obligated to pay or 120% of the Medicare reimbursement rate if the claimant does not have healthcare coverage or has healthcare coverage through Medicare or Medicaid. If there is no applicable Medicare rate for a service, the claimant can present 170 percent of the applicable state Medicaid rate. If the claimant obtains medical treatment or services under a letter of protection and the healthcare provider subsequently transfers the right to receive payment under the letter of protection to a third party, a defendant can present evidence of the amount the third party paid or agreed to pay the healthcare provider in exchange for the right to receive payment pursuant to the said letter of protection. This process also applies to future medical expenses. There are also new requirements for letters of protection and the information that must be contained within them to be considered valid.

This change is aimed at combatting so-called phantom damages that are regularly seen in bodily injury lawsuits where a claimant presents the amount of medical expenses charged, even though private health insurance, Medicaid, or Medicare pays a lesser amount. Although post-trial the damages were adjusted to account for amounts actually paid, the effect of admitting higher medical bills at trial allegedly, at times, influenced and inflated pain and suffering damages. The earlier system also encouraged claimants to seek treatment under letters of protection to obtain higher payments for medical services. In sum, this new law should reduce damages by limiting medical expenses to amounts actually paid or the amounts that should have been paid. 

In a premises liability case related to allegations of negligent security, Florida Statute § 768.0701 now states that an intentional tortfeasor (initial at fault party or instigator) can be allocated fault on the verdict form. This allocation will have a significant effect on negligent security cases as a jury can now assign a percentage of fault to the criminal actor who caused the harm. The foregoing was previously not allowed under Florida case law.

The subject bill further adds a presumption against liability in residential housing cases for an owner or manager in Florida Statute § 768.0706. This law states that the said presumption comes about when the owner or manager of residential housing implements defined security protocols, including, but not limited to, the use of security cameras, lighted parking, lighted walkways, deadbolts for each unit, locked windows, locked gates, peepholes, a crime prevention design assessment and crime deterrence and safety training. The burden of proof will rest with the owner or manager, but this new law provides a valuable defense by defining the standard of care for residential property owners in negligent security actions.

The bill also modified the award of attorney fees in bad faith actions. Florida Statute § 86.121 adds that a prevailing party is only able to obtain attorney fees where the insurer disclaims coverage and there is a declaratory judgment action. In other words, an award of fees is no longer automatic solely because an insured prevails on an argument. Furthermore, § 86.121 states that a prevailing party’s attorney’s fee claim cannot be assigned. This section also codifies the principle that issuing a reservation of rights letter is not a disclaimer. 

There were also several changes made to Florida Statute § 624.155. First, there is a new safe harbor provision for bad faith claims which states that there is no claim for bad faith if the insurer tenders the policy limits or amount being demanded within 90 days of being provided with sufficient information. The safe harbor protocol cannot be used as evidence in bad faith claims. If any insurer fails to utilize the aforesaid safe harbor period, the statute of limitations can be extended by 90 days.  Further, in a major change to existing law, mere negligence can no longer constitute bad faith. The insurer and the claimant have a reciprocal duty to act in good faith in providing information and setting deadlines. A court can also now consider comparative fault in bad faith suits. Additionally, where there are multiple claimants and insufficient limits, the insurer can file an interpleader action where the court will determine the prorated share. Finally, if the insurer and insured agree to binding arbitration, an arbitrator can decide allocation at the expense of the insurer. Any party that receives an allocation of funds must provide the insurer with a release. 

Florida Statute § 672.727 was also modified to state that prevailing party attorneys’ fees are now allowed against uninsured/underinsured motorists. 

The bill changed Florida Statute §57.104, which sets out the computation of attorney fees. The bill adds a relatively strong presumption that a lodestar fee is sufficient and reasonable in the computation of attorney fees and it can only be overcome in rare and exceptional circumstances with evidence that competent counsel could not otherwise be retained. This new provision will make it more difficult to obtain a multiplier on a claim for attorney fees. 

Finally, in construction matters, the prevailing party can now obtain attorney fees in litigation against a surety insurer. 

While the changes to Florida law are significant, it should be noted that in anticipation of this new law, claimant attorneys recently filed thousands of personal injury suits to potentially avoid the new law’s effects. Several counties were overwhelmed with filings and the online portal systems crashed or were having significant lag times. While not specifically expressed in the bill, the new laws will likely not apply retroactively. Therefore, it is expected that this massive deluge of lawsuits will be subject to the prior law while lawsuits filed after March 24, 2023, may be subject to these new provisions. 

The foregoing is merely a general and brief overview of the NEW Florida law, which causes an even greater need for the assistance of an experienced Personal Injury attorney.

If you have any additional questions regarding the foregoing or have any legal issue or concern, please contact the law firm of CASERTA & SPIRITI in Miami Lakes, Florida.