A Hillsborough County circuit judge ordered Citizens Property Insurance Corp. to stop sending claims disputes to state-employed arbitrators due to violations of policyholders' constitutional rights. Martin A. Alvarez, a plaintiff, demonstrated a likelihood of success in challenging Citizens' practice. In 2022, Citizens implemented provisions to divert claims into binding arbitration, which policyholders could not refuse. This led to over 1,300 claims being processed through DOAH courts. Citizens previously prevailed in most cases and offered minimal settlements, leaving plaintiffs vulnerable to legal fees if they did not accept offers or lost their cases.
Citizens Property Insurance Corp. has been ordered to stop using state arbitrators for claims disputes after a judge ruled the practice violates policyholders' constitutional rights to fair trials.
Circuit Judge Melissa Mary Polo found a substantial likelihood of success in claims against Citizens' arbitration practice, which diverts cases from court to binding arbitration.
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