Ch 4 · Dispute Resolution
Module 4.4
Litigation Handoff
When to bring in an attorney. CRN. Your file becomes the lawsuit. Make it bulletproof.
10 min read
What you'll learn
When to bring in an attorney. Why your file becomes the case. CRN strategy. The clean handoff that wins lawsuits.
4.4.1 When to bring in an attorney
Not every claim needs litigation. Most settle pre-suit. But these triggers say "lawyer now":
| Trigger | Why |
|---|---|
| Coverage denial (not just lowball) | Need § 86.121 declaratory action |
| EUO demanded | Carrier is preparing litigation defense |
| Bad-faith preservation needed | § 624.155 CRN must be filed |
| Claim > $100K disputed | Litigation likely worthwhile |
| Carrier's expert allegations (fraud, misrepresentation) | Defense required |
| AOB / contractor disputes | Multi-party litigation likely |
| Carrier delay > 60 days post-completed POL | § 627.70131 violation |
| Mediation / appraisal failed + claim warrants | Court next |
| Time-bar concerns (1-yr / 18-mo / 5-yr SOL) | Must file before deadline |
PA + attorney work together. PA owns scope, value, claim file. Attorney owns process, statutes, courtroom.
4.4.2 The PA's role in litigation
What you do
- Maintain the claim file — it becomes the lawsuit
- Provide expert testimony — fact witness for scope, value, carrier conduct
- Coordinate experts — engineer, contractor, IICRC inspector
- Continue documentation — daily log, communications
- Support discovery responses — gather records carrier requests
- Stay engaged — do not abandon client to attorney alone
What you don't do
- No legal advice — UPL violation
- No depositions outside fact testimony — let attorney lead
- No settlement negotiation w/o attorney — terms become legal
- No court filings — attorney's role
- No legal interpretations — flag for attorney
PAs who freeze out of cases hurt clients. PAs who try to lawyer hurt themselves. Stay in lane.
4.4.3 The bulletproof file
Your file becomes the lawsuit. Every gap in your file is a hole the carrier exploits.
What needs to be in the file
| Item | Detail |
|---|---|
| All correspondence w/ dates | Email + letters in chronological order |
| Carrier estimate(s) | Original + revised |
| Independent estimate(s) | Yours, contractors |
| All photos | Pre-mit, during demo, current |
| Receipts | Mitigation, repairs, ALE |
| Expert reports | Engineer, plumber, IICRC, others |
| Sworn POL + responses | Original + supplements |
| CRN if filed | Filed copy + carrier response |
| Recorded statement transcript | If taken |
| EUO transcript | If taken |
| Daily log of carrier interactions | Dates, calls, content |
| Mediation summary | If mediation occurred |
| Appraisal materials | If appraisal occurred |
| Statute citations | Your legal theory |
File organization
Folder structure attorneys love:
01_Policy
02_Notice_of_Loss
03_Carrier_Correspondence
04_Independent_Estimates
05_Photos
06_Mitigation_Receipts
07_Expert_Reports
08_Sworn_POL
09_Recorded_Statements_EUO
10_CRN
11_Pre_Suit_Notice
12_Court_Filings
Indexed PDFs > raw screenshots. Email exports w/ headers > inline pasted text.
4.4.4 The CRN — Civil Remedy Notice
§ 624.155(3) requires a CRN before filing a bad-faith claim. It's also a prerequisite to many of the strongest litigation tools.
When to file
- Carrier delay beyond statutory deadlines
- Carrier underpayment after independent estimate
- Carrier misconduct (recorded statement, EUO abuse, document fishing)
- Bad-faith claim handling
How to file
Online portal: myfloridacfo.com
What to include
- Specific statute violated (§ 624.155 + specifics)
- Conduct constituting violation
- Damages
- 60-day cure period
After filing
- Carrier has 60 days to cure (pay full amount, etc.)
- If they cure → claim resolved
- If not cured → bad-faith path opens
- If cure partial → leverage for full settlement
CRNs frequently produce settlement during the 60-day cure window.
4.4.5 § 627.70152 pre-suit notice
For first-party property claims under post-2022 reforms.
Required before filing
- 10 business day pre-suit notice to insurer
- Specific information about claim + dispute
- Demand amount
- Settlement offer terms
Defective notice = lawsuit dismissed (with refile potential).
What to include
- Your name, address, claim #
- Insurer name, claim # they assigned
- Sworn POL (or evidence one was filed)
- Specific items in dispute
- Pre-suit demand $ + supporting documents
- Settlement offer demand
After 10 days
If insurer doesn't pay or counter-offer satisfactorily, lawsuit can be filed.
This is statute. Not optional. Attorney drives this.
4.4.6 Working with the attorney
Smooth handoff
- Schedule transition meeting — PA, attorney, client
- Transfer file — full digital + clean indexes
- Brief on case status — PA has been on it longest
- Identify experts — those who'll testify
- Confirm communication channels — who client contacts for what
- Monitor progress — PA stays in the loop
Weekly check-ins
PA + attorney weekly call:
- Where is the case?
- What does PA need to do?
- What expert reports needed?
- Any client communications to coordinate?
Avoid the freeze-out
Some attorneys want full control + push PA away. Bad outcome — your file dies on the vine. Stay engaged. Your file = your continued involvement = your fee.
4.4.7 Fee math (post-HB 837)
Pre-2023: § 627.428 one-way attorney fee → carrier paid winning policyholder's lawyer.
Post-2023: § 627.428 repealed. Attorney fees now via § 768.79 (proposal for settlement) + § 86.121 (declaratory action) + contract.
Typical structure
| Recovery | PA fee | Attorney fee | Net to client |
|---|---|---|---|
| $100K | $10-20K | $30-40K | $40-60K |
| $250K | $25-50K | $75-100K | $100-150K |
| $500K | $50-100K | $150-200K | $200-300K |
These vary by contract. Discuss explicitly with client at handoff. Net recovery still typically beats carrier's pre-suit lowball.
4.4.8 Common litigation handoff mistakes
| Mistake | Cost |
|---|---|
| Wait too long to involve attorney | SOL bar, lost remedies |
| Hand off and disappear | File goes stale, fee at risk |
| Try to lawyer (UPL) | License risk |
| No clean file | Attorney rebuilds, fees grow |
| Untrained experts | Discredited at deposition |
| Settle pre-CRN | Lost bad-faith leverage |
4.4.9 Client conversations at handoff
What to say
"We've reached the limit of what I can do as your PA. The next step requires legal action. I have an attorney I work with who specializes in this. They'll handle the lawsuit. I'll continue working alongside them on the claim file. Here's what to expect..."
What to make clear
- PA fee continues during litigation
- Attorney fee is separate (typically contingent)
- Client has one team, two specialists
- Client decision + control retained
Get attorney engagement letter signed
Don't wait for attorney to do it. PA-driven warm handoff is most efficient.
4.4.10 Action steps
- Identify trigger — coverage denial, EUO, delay, etc.
- Brief client — explain why attorney needed.
- Ensure CRN filed if bad-faith path needed.
- Send pre-suit notice if § 627.70152 applies.
- Hand off clean file to attorney.
- Stay engaged during litigation.
- Continue documentation — daily log, expert coordination.
- Collect both fees — PA + attorney recover from settlement.
Next module: 4.5 Time Limits You Must Know.
Educational. Not legal advice. Specific litigation paths require licensed attorney guidance.