A Florida appeals court this week entered an order quashing a trial court’s order allowing a plaintiff to add a claim for punitive damages against a nursing home and suggested, along with other appellate courts, that there should be an immediate appeal of all orders allowing the addition of punitive damages claim.
Under Florida law, a claimant is not permitted to bring a claim for punitive damages without first having a hearing before the trial court and providing a reasonable showing by evidence in the record or proffered by the claimant which would provide a reasonable basis for recovery of punitive damages. FS 768.72. Presently, if a trial judge grants the motion to allow a claim for punitive damages, the only way to appeal is through certiorari review which is more difficult to obtain relief and is a very narrow review which is recognized as being in adequate under the circumstances.
In the case of Life Care Centers of America v. Bill Croft, Jr, the Second District Court of Appeals accepted review of the trial court order granting the plaintiff’s motion to add a claim for punitive damages. The court reviewed the evidence presented at the hearing and determined that it was inadequate to warrant the amendment of the complaint permitting a claim for punitive damages. In quashing the order, the court recognized the significance a claim for punitive damages can have in litigation. In fact, the court quoted a prior courts statement that, “the granting of a motion for leave to amend the complaint to add a punitive damages claim can be a ‘game changer’ in litigation.” Having defended many claims and attended many hearings opposing those motions, it is undisputed that some claimant’s counsel utilize the threat of punitive damages to negotiate higher settlements because they know that such a claim can have a significant impact on the litigation and ultimate resolution of the claim.
In the Life Care Centers case, the court stated that “the narrow, exacting standard afforded by certiorari proceedings does nothing to mitigate the impacts of allowing a punitive damage claim to proceed. It is for that reason that we suggest, as the Third District has done, that the Florida Bars Appellate Court Rules Committee consider amending the Florida Rules of Appellate Procedure to allow the immediate appeal from a nonfinal order granting leave to amend a pleading to add a claim for punitive damages, allowing the district courts de novo review of the trial court’s findings.”
While this is only a recommendation, it is very important to note that this court, along with another appellate court recognized the dangers of very limited appellate review of such an important issue that can have a significant impact on the litigation. As of now, the Florida Court has only urged the Rules Committee adopt the ability to immediately appeal an order granting a claim for punitive damages, it will certainly be persuasive to other courts until such time as the Rules Committee amends the current rule.
If you have any questions or would like more information on this issue, please contact G. Jeffrey Vernis at GJVernis@national-law.com.