Florida House Panel Advances Bill Raising Lawsuit Payout Caps Against Local Governments

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Florida House Panel Advances Bill Raising Lawsuit Payout Caps Against Local Governments

Judge's Gavel Court
Judge’s Gavel. TFP File Photo

Despite pushback from local governments, a Florida House committee on Thursday approved a bill that could significantly raise the amount cities, counties, and other public entities may have to pay in lawsuits involving personal injuries.

The House Budget Committee voted 15–3 in favor of the bill (HB 301), sponsored by Rep. Fiona McFarland, R-Sarasota. The proposal would overhaul the state’s sovereign-immunity laws by increasing liability caps for government agencies, which haven’t been adjusted in more than a decade.

Currently, state law limits government payouts to $200,000 per person and $300,000 per incident — figures set in 2010. If a settlement exceeds those amounts, victims must pursue a time-consuming and uncertain “claim” bill through the Legislature.

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McFarland’s bill would raise the limits to $1 million per person and $3 million per incident and allow agencies to settle claims directly without legislative intervention.

Supporters argue the move is long overdue.

“The status quo is unacceptable,” McFarland told the committee.

But officials from across the state — including representatives from Miami-Dade County, Fort Lauderdale, and rural school districts in the Panhandle — warned that the higher caps would place a heavy financial burden on already stretched local budgets.

“We really can’t afford this,” said Bob Harris, general counsel for the Panhandle Area Educational Consortium, which represents districts in Northwest Florida. He cautioned that even a single large settlement could devastate a small school district’s finances.

Critics of the bill also noted the potential rise in insurance premiums and legal expenses for public agencies already facing budget constraints.

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Despite the concerns, the bill passed with bipartisan support, though three Republicans — Rep. Patt Maney of Shalimar, Rep. Toby Overdorf of Palm City, and Rep. John Snyder of Stuart — voted against it. McFarland indicated she is open to revisiting the proposed caps before the bill moves forward.

The measure must still pass the House Judiciary Committee before it can be considered by the full chamber.

If enacted, HB 301 would mark one of the most significant changes to Florida’s sovereign-immunity laws in years, potentially reshaping how personal injury claims against public entities are handled statewide.

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