Defending Against Subrogation Lawsuits in Florida: What You Need to Know

Receiving notice of a subrogation lawsuit can be overwhelming. Insurance companies throughout Florida regularly pursue these claims to recover money they’ve paid to their insured parties. Based in Orlando but serving clients statewide, our attorneys have helped countless Floridians successfully defend against subrogation claims from Miami to Pensacola. This guide explains the most effective defenses available when facing a subrogation lawsuit in Florida.

Understanding Subrogation Claims in Florida

Before discussing defenses, it’s important to understand what subrogation actually means. When an insurance company pays a claim to their policyholder for damages allegedly caused by you, that insurer may pursue reimbursement by “stepping into the shoes” of their insured. This allows them to seek recovery directly from you for the amount they paid out.

Subrogation claims are common following car accidents, property damage incidents, and other situations where liability insurance comes into play. In Florida, these claims are governed by both statutory and case law, with Florida Statute 768.76 addressing many aspects of subrogation rights.

Insurance companies often pursue various types of subrogation lawsuits in Florida, but you have several legal defenses available to contest these claims.

Powerful Defenses Against Subrogation Claims

When faced with a subrogation lawsuit, several legal defenses may apply to your situation. Our Florida subrogation defense attorneys regularly employ these strategies when representing clients throughout the state.

Statute of Limitations

One of the strongest defenses against a subrogation claim is that the lawsuit was filed after the statute of limitations expired. In Florida, most subrogation claims must be filed within:

• Two years for negligence claims (such as most car accidents)
• Five years for written contract claims

If the insurance company waits too long to pursue their claim against you, you may have grounds to have the case dismissed entirely. This time limit typically begins from the date of the incident that caused the damage or injury.

Waiver of Subrogation

Many contracts contain waiver of subrogation clauses that prevent insurance companies from pursuing claims against certain parties. These waivers are common in:

• Leases
• Construction contracts
• Business agreements
• Some auto insurance policies

If such a waiver exists in a contract relevant to your case, it could provide a complete defense against the subrogation claim. During the discovery phase of a Florida personal injury lawsuit, your attorney will work to determine if any applicable waivers exist.

Made-Whole Doctrine

Florida follows the “made-whole doctrine,” which requires that the insured party must be fully compensated for all losses before the insurance company can pursue subrogation. If the insured still has uncompensated losses, the subrogation claim may be limited or barred.

This defense often requires a detailed analysis of the original settlement or judgment to determine if the insured party was truly made whole before subrogation was pursued.

Modified Comparative Negligence

Florida’s modified comparative fault system serves as a powerful defense in subrogation cases. Under Florida Statute 768.81, if the insured party contributed to their own damages, your financial responsibility may be reduced proportionally.

What makes this defense particularly effective is Florida’s 2023 shift to a modified comparative negligence standard. Now, if the insured party is found to be more than 50% responsible for the incident, you may have no liability whatsoever. Even in cases where you bear some responsibility, your liability is reduced by the insured’s percentage of fault. Our car accident subrogation defense attorneys regularly investigate all potential contributing factors to build strong comparative fault arguments that minimize client liability.

Lack of Causation

For a successful subrogation claim, the insurance company must prove that your actions directly caused the damages they paid for. If you can demonstrate that:

• The damages were caused by a third party
• Pre-existing conditions were responsible
• An intervening event broke the causal chain

You may have a strong defense against the subrogation claim. This defense works particularly well in complex car accident defense cases where multiple factors contributed to the damages.

Responding to a Subrogation Demand Letter

Often, your first notice of a potential subrogation claim will come in the form of a demand letter from an insurance company or their attorney. How you respond to this initial communication can significantly impact your case.

When you receive such a letter, immediately take these steps:

Avoid making statements about the incident or admitting fault. Insurance companies may use your statements against you later. Never sign anything without legal review. Some documents may contain admissions of liability or waive important rights. Consult with a Florida defense attorney experienced in subrogation matters before responding.

Our attorneys recommend following the guidance in our article about responding to a lawyer’s letter after an injury claim in Florida to protect your interests from the start.

Insurance Policy Examination

Some insurance policies contain provisions that may limit or prohibit subrogation in certain circumstances. When defending against these claims, a thorough examination of all relevant insurance policies is essential.

Key policy elements to review include:

• Subrogation clauses and limitations
• Coverage exclusions
• Deductible requirements
• Policy limits

Understanding the specifics of your insurance coverage, as well as the policy that paid the original claim, can reveal potential defenses. For more information about insurance coverage issues, you might find our guide to understanding Florida car insurance coverage helpful, even if your case involves other types of insurance.

Florida Civil Counsel, P.A.: Subrogation Defense Attorneys

Subrogation claims involve complex legal principles and insurance practices. Without proper representation, you risk being held liable for amounts that could otherwise be reduced or dismissed with the right defense strategy.

Our Orlando subrogation defense attorneys have extensive experience handling these cases throughout Florida. We understand the tactics insurance companies use and how to effectively counter them. While our firm is based in Orlando, we proudly represent clients facing subrogation lawsuits in every corner of the state, from Jacksonville to Miami and Tampa to Pensacola.

If you’ve been served with a subrogation lawsuit or received a demand letter, time is of the essence. Contact our team today to discuss your case and explore your defense options. Our attorneys will carefully evaluate your situation and develop a strategic plan to protect your financial interests against aggressive insurance company claims.

Florida residents facing subrogation lawsuits deserve strong legal protection. Our statewide defense team is ready to help you navigate this challenging legal process and work toward the most favorable outcome possible for your specific circumstances.