June 22, 2001
Unauthorized Practice Law Committee
The Florida Bar
650 Apalachee Parkway
Tallahassee, Florida 32399
Dear Ladies and Gentlemen:
It is my understanding that your Committee is
considering whether control by an insurance company over how a claim is
defended constitutes the unauthorized practice of law.
I found it astounding that this very self-serving
matter is before a Committee of The Florida Bar. Obviously, this is a
very self-serving issue for defense lawyers and this entire matter has
arisen as insurance carriers have attempted to get control of exorbitant
attorneys’ fees. Everyone in the business community is very aware of
what is at stake with regard to this issue. Defense lawyers are upset
because they cannot build exorbitant fees, which they did in the past,
that resulted in significant increases in premiums to Florida employers.
There is absolutely nothing objective about the Bar’s interests in
this matter as it relates to the public. The only interest the Bar has
is returning to the days of exorbitant attorneys’ fees. Maybe, as many
in the business community have suggested, we should support moving the
regulation of The Florida Bar to an agency of state government. I can
assure you that the Bar moving forward with this type of proposal has
increased the talk within the business community with regard to
regulation of attorneys by the state.
Let me provide you with a "real world"
matter relating to this issue. There is no insurance company in the
world that operates without reinsurance. Every time reinsurers come in
to look at the files of a company they are reinsuring, the first thing
they ask is "let us see your written procedure relating to the
control of the file by the adjuster." In other words, reinsurers
want to ensure that it is the adjuster controlling the file, and not the
attorney. As president & CEO of the Associated Industries Insurance
Company, Inc., I can assure you that every reinsurer I have ever met
with has emphasized to me emphatically that if they ever feel we are
letting the attorneys control our files, they will definitely not renew
our coverage for the next year.
I am simply astounded that The Florida Bar has
proceeded with this issue believing that the business community is too
dumb to know what is going on here. Please rest assured that everybody
in the business community knows full well that this entire issue is
about the fact that defense lawyers have seen their fees fall because
they got totally out of control over the years in billing insurers, and
the employers who pay the ultimate premiums simply said
"Enough."
Please be advised that Associated Industries of
Florida, on behalf of our 10,000 member companies who employ over 1.5
million people in our state, is watching this issue very carefully, and
we will continue to report to the business community exactly how it is
being handled by The Florida Bar.
Sincerely,
Jon L. Shebel
President & Chief Executive Officer |
MARY ANN STILES LETTER
TO THE FLORIDA BAR
FLORIDA LAWYERS SEEK UNLIMITED FEES IN
INSURANCE CASES/ AIF PRESS RELEASE
