Florida's New Pre-Suit Notification Requirement: Retroactive or Prospective Application?
February 05, 2024 —
Holly A. Rice - Saxe Doernberger & Vita, P.C.Florida’s newly formed Sixth District Court of Appeal (“Sixth DCA”) recently certified conflict with Florida’s Fourth District Court of Appeal on the issue of retroactive application of the pre-suit notice requirement contained in Florida Statute §627.70152.1 Earlier this year, the Fourth District Court of Appeal (“Fourth DCA”) held that the pre-suit notice provision applies retroactively, meaning, it applies to all suits filed after July 1, 2021, regardless when the insurance policy was issued.2 The Sixth DCA, in
Hughes v. Universal Property & Casualty Insurance Company,3 directly rejected the Fourth DCA’s interpretation and instead found a retroactive application of the pre-suit notice to be unconstitutional under Florida law. Prior to the Fourth DCA’s ruling, most trial courts had found no retroactive application for the pre-suit notice provision.4
In August 2021, shortly after Florida Statutes Section 627.70152 went into effect on July 1, 2021, Rebecca Hughes (“Hughes”) sued Universal Property & Casualty Insurance Company (“Universal Property”) for breach of contract after Universal Property denied her insurance claim. Hughes did not file a pre-suit notice under Section 627.70152. Universal Property moved to dismiss based on Hughes’ failure to file the pre-suit notice, arguing that the pre-suit notice requirement applies to all lawsuits filed after July 1, 2021, even if the claimant’s insurance policy was issued before the statute’s effective date. The trial court agreed with Universal Property and dismissed the lawsuit.
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Holly A. Rice, Saxe Doernberger & Vita, P.C.Ms. Rice may be contacted at
HRice@sdvlaw.com
In Review: SCOTUS Environmental and Administrative Decisions in the 2020 Term
August 10, 2021 —
Anthony B. Cavender - Gravel2GavelSeveral decisions of interest were issued in the 2020 term, which stretched from October 2020 until early July 2021. This review will concentrate on environmental and administrative law cases.
Texas v. New Mexico
On December 14, 2020, the Court issued its ruling in an Original Action. Water is precious in the Pecos River Valley, and the distribution of water is governed by the Pecos River Compact. Here, Texas complained that New Mexico illegally was seeking delivery credits for evaporated water credits but the Court agreed that New Mexico was entitled to these credits under the provisions of the River Master’s Manual.
Florida v. Georgia
On April 1, 2021, in another waters right ruling on an Original Action filed in the Supreme Court, the Court rejected Florida’s claims that Georgia’s use of interstate waters harmed Florida’s businesses. Florida had to satisfy a heavy burden of proof, which it failed to do.
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Anthony B. Cavender, PillsburyMr. Cavender may be contacted at
anthony.cavender@pillsburylaw.com
Navigate the New Health and Safety Norm With Construction Technology
August 03, 2020 —
Jeremy Larsen - Construction ExecutiveSafety has always been a pressing issue in construction, and as states reopen and construction projects pick up steam once again, the industry will become even more closely scrutinized than before. Construction safety looks a lot different than it did six months ago. In addition to the concerns around keeping workers safe on construction sites, today’s contractors are faced with a whole new category of risk, and with new health and safety measures that may vary by county, state or region. New requirements range from social distancing and limits on the size of crews, to requiring masks and temperature checks for all workers.
OPERATING IN THE NEW NORM
This sudden onset of COVID-19 put otherwise healthy businesses into a state of chaos that, months later, is still hard to navigate. By March of 2020, reports indicated that nearly one-third of construction projects had come to a halt. Now, as the industry emerges, balancing business continuity efforts with trying to get crews back to work and jobsites moving again will no doubt present challenges. New health and safety measures, plus the fact that no one wants to touch paper in the field, will add another layer of administrative and procedural oversight to the construction process. Of course, these measures are absolutely needed, but construction businesses can’t ignore the fact that it changes the very way projects and jobsites are managed. And, without the right tools in place, it may be a bumpy ride.
Reprinted courtesy of
Jeremy Larsen, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Mr. Larsen may be contacted at
jeremy.larsen@viewpoint.com
North Carolina Weakened Its Building Codes in 2013
October 09, 2018 —
Ari Natter - BloombergFive years ago, encouraged by home builders and an anti-regulatory zeal, lawmakers in North Carolina joined other states in weakening building code requirements.
It’s a decision they may regret as Hurricane Florence takes aim at the Carolinas.
The Legislature in 2013 increased the amount of time between updates to its building code from three years to six. That means that updates that set new standards for elevating the floors in flood-prone homes aren’t in effect, according to the Federal Alliance for Safe Homes Inc., a non-profit disaster safety organization.
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Ari Natter, Bloomberg
Hiring Subcontractors with Workers Compensation Insurance
January 10, 2018 —
David Adelstein - Florida Construction Legal UpdatesYou want to hear more on the POWER of
statutory workers compensation immunity? Well, here it is, because as I have mentioned in the past,
workers compensation immunity is powerful reinforcing the importance for contractors to ensure the subcontractors they hire absolutely have workers compensation insurance. Likewise, subcontractors want to ensure the subcontractors they hire also have workers compensation insurance.
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David Adelstein, Florida Construction Legal UpdatesMr. Adelstein may be contacted at
dadelstein@gmail.com
Beware: Hyper-Technical Labor Code Violations May Expose Employers to Significant Claims for Penalties under the Labor Code California Private Attorneys General Act of 2004 (PAGA)
May 10, 2017 —
Angela Reston-Nunez – Newmeyer & Dillion LLPMost employers know that companywide policies or practices that do not strictly comply with applicable state or federal employment laws can expose employers to class action lawsuits by large numbers of employees seeking recovery of massive sums in damages, attorneys’ fees and costs. Unfortunately, traditional class action lawsuits are not the only representative actions employers should be concerned with. Recent litigation trends have shown that California’s lesser known Labor Code Private Attorneys General Act of 2004 (“PAGA”) can be equally, if not more harmful to employers than class actions due to steep penalties for minor violations.
WHAT IS PAGA?
Under PAGA, “aggrieved employees” can sue employers for alleged Labor Code violations. Like class actions, a PAGA plaintiff sues on a representative basis on behalf of themselves and other workers. However, unlike class action plaintiffs, PAGA plaintiffs do not seek damages; rather, they seek civil and statutory penalties formerly recoverable solely by state agencies in enforcement actions.
The distinction between recovery of damages in class actions and recovery of penalties in PAGA actions reflects the often-insidious nature of PAGA claims. While workers have long alleged “derivative” PAGA claims for penalties in connection with more substantive underlying Labor Code violations (meal or rest break violations, for example), we have seen a recent spike in PAGA suits alleging hyper-technical Labor Code violations with no underlying substantive violation, and where the “aggrieved employees” have suffered no actual harm.
WHAT'S AT STAKE?
Equally troubling for employers is the method by which significant penalties are aggregated. With a few significant exceptions, penalties generally range from $50 to $250 per violation. At first blush, this may not seem like much, however total penalties rise rapidly when considering that calculations are made on a per-employee and a per-pay period basis.
AN EXAMPLE ON HOW PAGA WORKS
Consider the following example based on one recent case:
Issue: An employee brought a PAGA-only lawsuit on behalf of himself and 400 other “aggrieved employees” against his employer for alleged Labor Code violations.
Claim: The employee claimed the employer’s 30-year practice of paying employees 9 days after the close of the applicable payroll period violated Labor Code Section 204(d), which requires payment to be made within 7 days of the close of the payroll period. The employee claimed that, under PAGA, the employer was liable for a minimum penalty of $100 per employee, per pay period, going back at least one year (the statutory limitations period for PAGA claims).
Exposure: With 400 employees, 24 pay periods per year, and $100 per violation, the plaintiff sought a minimum of $960,000 in penalties (not including substantial attorneys’ fees, costs and interest also available under PAGA), despite offering no evidence of harm suffered by the employees or prior notice of the issue.
OTHER IMPORTANT CONSIDERATIONS
In addition to a draconian penalties scheme, there are a myriad of additional aggravating factors for employers involved in PAGA litigation, such as:
- PAGA plaintiffs are not required to meet the rigorous class certification standards required of class action plaintiffs, meaning plaintiffs’ attorneys may be more likely to bring meritless “strike suits” aimed at obtaining quick settlements based on significant alleged penalties exposure.
- 75% of PAGA penalties recovered by way of settlement or judgment are directed to the state of California, while the "aggrieved employees” only keep 25%, reinforcing the notion that PAGA claims are frequently attorneys’-fee-driven, rather than for protecting employees.
STEPS FOR EMPLOYERS TO PROTECT THEMSELVES
Fortunately, there are a number of measures employers can take prior to and during wage and hour litigation which can dramatically reduce, or even eliminate, exposure to substantial penalties and damages. This includes:
- Regular reviews. Prior to litigation, we recommend regular detailed reviews of company policies and practices in order to identify areas of possible concern and ensure compliance with California’s ever-changing labor laws.
- Take action. On receipt of a new PAGA claim, taking immediate action to remedy an alleged violation within the Labor Code’s 33-day “safe harbor” time-period may help limit an employer’s exposure, and could bar a plaintiff from filing suit at all.
- Be aggressive. Once a PAGA or class action claim is in litigation, a proactive, aggressive approach to claim evaluation, investigation and litigation is critical.
For these reasons and more, it’s in an employers’ best interest to monitor these issues closely and seek input when appropriate.
Angela Reston-Nunez is a labor and employment attorney in Newmeyer & Dillion’s Walnut Creek office. For questions regarding PAGA, class action or individual wage and hour issues, or other employment law matters, please feel free to contact Angela Reston-Nunez at (925) 988-3249 or angela.reston-nunez@ndlf.com.
About Newmeyer & Dillion
For more than 30 years, Newmeyer & Dillion has delivered creative and outstanding legal solutions and trial results for a wide array of clients. With over 70 attorneys practicing in all aspects of business, employment, real estate, construction and insurance law, Newmeyer & Dillion delivers legal services tailored to meet each client’s needs. Headquartered in Newport Beach, California, with offices in Walnut Creek, California and Las Vegas, Nevada, Newmeyer & Dillion attorneys are recognized by The Best Lawyers in America©, and Super Lawyers as top tier and some of the best lawyers in California, and have been given Martindale-Hubbell Peer Review's AV Preeminent® highest rating. For additional information, call 949-854-7000 or visit www.ndlf.com.
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Lewis Brisbois’ Houston Office Selected as a 2020 Top Workplace by the Houston Chronicle
December 21, 2020 —
David Oubre - Lewis Brisbois Lewis Brisbois’ Houston office was recently selected for inclusion in the Houston Chronicle’s 2020 Top Workplaces section. To determine the recipients of this honor, the publication surveyed more than 37,000 Houston-area employees regarding their organization’s leadership, cooperation, communication, work-life balance, pay, and benefits. Based upon the employees’ feedback, the publication selected its Top Workplaces winners and announced them during a virtual awards ceremony in November.
Houston Office Administrator Kristi Kraeger expressed excitement concerning this honor, explaining, “In the two years I have been with Lewis Brisbois, we have more than doubled in size. We have created a friendly, professional, team-oriented environment, and we strive to provide growth and opportunity to our employees.”
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David Oubre, Lewis BrisboisMr. Oubre may be contacted at
David.Oubre@lewisbrisbois.com
FIFA May Reduce World Cup Stadiums in Russia on Economic Concern
July 16, 2014 —
Tariq Panja – BloombergFIFA may reduce the number of stadiums used to host the 2018 World Cup in Russia on concern that their economic viability after the monthlong event ends.
FIFA President Sepp Blatter said a day after Germany’s 1-0 win over Argentina in the final that a delegation from soccer’s governing body will meet Russian tournament organizers in September to discuss plans for the next edition.
Blatter gave a mark of 9.25 out of 10 to an “exceptional” Brazil World Cup, which cost $11 billion to stage. The tournament is a difficult challenge for organizers, Blatter said, illustrated by construction delays at almost all of the 12 arenas used for the 64 games in Brazil.
“The World Cup has taken such a dimension that the organization is hard work for the organizing country and also for FIFA,” Blatter told reporters at Rio de Janeiro’s Maracana stadium, where Germany claimed a fourth title and became the first European country to win the tournament in South America.
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Tariq Panja, BloombergMr. Panja may be contacted at
tpanja@bloomberg.net
