Jim Kallinger
Small businesses are the engine that keeps the Florida economy moving forward. They provide key services to their communities, employ full and part-time employees of almost every age and level of experience, and represent the foundation on which our great state is built. It is the role of groups like mine, chambers of commerce, and our elected policymakers to advocate for those small businesses and foster an environment that encourages innovation and entrepreneurship for the benefit of everyone.
Let’s remember that “everyone” also consists of the small business consumers that depend on their local retailers, pharmacies, and restaurants to maximize their quality of life in a state that has seen significant growth over the last 3 years.
We need to always be identifying and removing obstacles to opening a business or that threaten to close a business altogether. Historically, one of the biggest such threats in Florida has been litigation. From questionable claims under the Americans with Disabilities Act (ADA) to matters of premises liability, it often seems like every innocuous decision a businessowner makes could be seen as cause for a lawsuit, sometimes even with people who are not a damaged party.
While these lawsuits may appear to be over relatively insignificant sums, they have effects that can be felt well outside the courtroom. They represent significant expenses that can threaten a small business’s viability, thereby harming wider communities in the process. After all, it is hard for a business to invest in its employees and local community causes when it is investing in assembling a legal team.
For years, Florida was considered a “judicial hellhole” where settlements related to frivolous lawsuits cost millions and threatened jobs. In fact, some reports have estimated that frivolous lawsuits were costing Florida as a whole over 100,000 jobs annually equating to billions in personal income that was lost.
This all changed in 2023 when the legislature finally acted and passed one of the most significant lawsuit reform packages in the country. Now, litigation is down, and while we have not seen the full effect from that action yet, it has already resulted in more jobs, more small business successes, and more insurance companies entering the market to help shoulder our liability loads and begin to flatten rates.
It is imperative that our legislature let these reforms work before back-pedaling or changing course. It is also important to pursue more reforms related to litigation financing, medical malpractice reform, and maybe even additional curbs on certain types of advertising.
Frivolous court cases are a threat that impacts all of us whether we are consciously aware of it or not. By continuing down the road to smart and comprehensive reforms, we will maintain Florida’s reputation as not only the Free State of Florida but as the best state in the world to do business as well.
Jim Kallinger is a former State Rep from Orlando. He is chairman of the Small Business and Consumers Alliance, Inc, a 501c4 devoted to small business advocacy.