Citizens Insurance targeted in lawsuits that seek to void forced arbitration rulings

"The suits, filed in Miami-Dade and Seminole counties, base their arguments on a Hillsborough County judge's Aug. 2 injunction that suspended Citizens' ability to send claim disputes to the Division of Administrative Hearings (DOAH) while a policyholder pursued his claim that the system violated his constitutional right to a fair trial. The judge in that case, Melissa Mary Polo, found that the policyholder demonstrated that their argument, that the system violates policyholders' constitutional rights, stands a "substantial likelihood of success" of prevailing."

"DOAH, a state agency, contracted with Citizens last year to preside over disputes through 2027. Citizens is paying $19.3 million for the service. The lawsuits challenge Citizens' use of a state law enacted in 2023 that allows it to require new and renewing customers to accept the DOAH policy provision. That provision allows Citizens to divert claims disputes from the court system, where judges and juries decide outcomes, to a group of appointed administrative law judges who the lawsuits claim rule overwhelmingly in Citizens' favor."

"One of the class action complaints, filed on Aug. 27 in Seminole County on behalf of lead plaintiff Jamie Alverio, a Sanford resident, seeks to void all settlements agreed to by Citizens customers prior to DOAH hearings. DOAH's website shows that more than 1,200 of 1,670 cases diverted to the DOAH court since 2024 have been dismissed without a hearing."

Two new lawsuits were filed in Miami-Dade and Seminole counties seeking to void settlements and rulings involving Citizens Property Insurance Corp. customers forced into a state-funded arbitration system. The suits rely on a Hillsborough County judge's Aug. 2 injunction that suspended Citizens' ability to send disputes to the Division of Administrative Hearings (DOAH) while a policyholder pursued a constitutional fair-trial claim. DOAH contracted with Citizens through 2027 for $19.3 million. The lawsuits challenge a 2023 law requiring customers to accept DOAH provisions, contend that appointed administrative law judges favor Citizens, and seek to void settlements made before DOAH hearings.

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