Personal Injury Protection (PIP) Battle in Florida

The Daily Business Review last week wrote an unbelievable article about a battle between an insurance company and its policyholders. This has been the landscape since Chinese and Babylonian traders started issuing insurance about two thousand years ago. But, in this story, the insurance company has expanded its war to include Florida judges.

United Automobile Insurance Company’s lawyers are seeking to remove a Florida judge from all Personal Injury Protection (PIP) accident cases involving the insurance company, citing the judge’s alleged bias.

The Florida-based carrier’s attorneys have moved to disqualify Broward County Court Judge Jay from “any and all cases involving United Automobile Insurance Company as a litigant.” United alleges that Judge Spechler routinely displays “pre-disposition, prejudice and bias” against its attorneys. In an interview, Judge Spechler, who has served on the bench for 19 years, estimated that, incredibly, two thirds of his cases are PIP disputes with this insurance company.

This is not United Auto’s first attack on a Florida judge. Last month, United Auto’s lawyers also moved to disqualify Miami-Dade County Court Judge Jacqueline Schwartz from sitting on PIP cases.

Apparently, United Auto is well known among Florida counsel for their insurance attorneys’ aggressive fight against its own policyholders making PIP claims. In 2004, Florida’s Office of Insurance Regulation fined the company $75,000 for fighting 96 percent of its policyholders’ claims, because if the carrier really discovered that much fraud, it was negligent in not reporting it to the state.

Apparently, the gloves are off, and I mean off and this time the fight is not against plaintiffs. United general counsel Charles Grimsley is saying that judges have not treated United fairly in the courtroom, and that he believed judges were being “paid off,” although he admitted he could not prove it. Later, Mr. Grimsley backed away from his allegation by saying he does not think there is “any money changing hands.” United Auto apparently then took out advertisements stating that Mr. Grimsely’s statement “does not remotely reflect the opinion of United Automobile Insurance or any of its defense attorneys.”
Ninety-six percent of claims are fraudulent? This is beyond incredible. United Auto is basically declaring war on its policyholders in an effort to discourage claims. United Auto is the leading auto insurance company in Florida. Martin Luther King said that the arc of the moral universe is long but it bends toward justice. I have to think that this arc will soon bend towards the justice of United Auto losing its market share in Florida.

  • Great Blog post on the Florida PIP situation. It is nice to see that although you are in Maryland, you stay abreast of all the key legal developments around the country. This blog post is a true testament of your commitment to your readers. I will definitely be a repeat visitor to your blog. I gave it two thumbs up on stumble and tagged it in delicious. You definitely deserve a big round of applause for your attention to detail and frequent posts. Keep up the good work.

    Juliet Sallette

  • I read the transcript between Judge Spechler and the insurance defense attorney, and my impression was that there was no bias. If anything, that judge exercised extreme restrain and professionalism before an attorney who was too short sided to realize it. Bridges don’t get typically burned over night. Instead of filing to recuse this judge and others, perhaps those FL defense lawyers should recuse themselves from handling those files in front of judges they have been less than professional in front of in the past. Imagine that…

    For a re-print and interesting details, including a transcript of the hearing between the Hon. Jay Spechler and the insurance defense attorney, see:

  • Florida PIP Defense Attorney

    The PIP guys are only telling you one side of the story.

    First off, let me say that I am for the extension of a reformed PIP scheme. A sunset without anything replacing the current system would be a disaster.

    Florida’s PIP system may not be rife with “Fraud” per se, as in staged accidents and the like. It most certainly is out of control with “ABUSE”. Every file that I’ve seen is ooozing with rampant overcharging. When you see chiropractors repeatedly charging $70 or more to throw ice unto someone’s back for 10 minutes, you begin to see the insurer’s side of things.

    What’s also puzzling is why every low-speed, $200 fender-bender ends up being a maxed-out, $10,000 claim for months of chiropractic adjustments, massage, the aforementioned ice, MRI’s not to mention two or three seperate law-suits (the chiro., the diagnostic read, the MRI) with a potential windfall for two or three different plaintiff’s attorneys.

  • patriot

    spechler needs neutrality training or the implant of a conscience.

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