Resumption of Citizens Insurance alternative dispute hearings ordered

"State-owned Citizens Property Insurance Corp. may continue to pursue more than 400 claims through an alternative dispute system that critics say produces rulings favorable to the insurer. A circuit judge from Leon County, Jonathan Sjostrom, signed an order on Friday saying that state law authorizes the company to send pending lawsuits to the Department of Administrative Hearings rather than the court system. The ruling requires DOAH to move forward on pending arbitration cases that have been stalled since Aug. 1."

"Citizens appealed the injunction and declared that it could not remain in effect while the appeal was being considered. Polo rejected that argument and reinstated the injunction, prompting Citizens and DOAH itself to seek emergency orders to resume the DOAH hearings. A legal analysis in Sjostrom's ruling says the arbitration provisions "are explicitly authorized by statute," that arbitration is favored by state law, and all participants are protected by the Florida Arbitration Code."

Jonathan Sjostrom signed an order finding state law allows Citizens Property Insurance to send pending lawsuits to the Department of Administrative Hearings instead of the court system. The order requires DOAH to proceed with arbitration cases stalled since Aug. 1. A Citizens spokesman said he did not know whether the order permits sending new cases, and said seven other judge-approved cases will proceed. The order overturns a statewide injunction issued by Judge Melissa Mary Polo. Plaintiffs contend the diversion, enabled by a 2023 law and a mandatory policy provision, violates policyholders' constitutional access to the courts. The ruling says arbitration provisions are statutorily authorized and protected by the Florida Arbitration Code.

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