Citizens Arbitration Scheme | Property Insurance Coverage Law Blog

The saga continues in the fight for policyholder rights against Citizens Property Insurance Corporation and its constitutionally suspect DOAH arbitration scheme. Just when it seemed Citizens might gain a procedural edge by invoking an automatic stay through its appeal, the trial court stepped in again. This time with an emphatic reaffirmation of its earlier ruling. The court has vacated the automatic stay that was triggered when Citizens filed its notice of appeal, meaning that the injunction halting all DOAH arbitrations is once again in full effect while the appellate court takes up the matter. ¹

Yesterday’s new order doesn’t mince words. It not only reaffirms the earlier constitutional concerns about the DOAH arbitration process but goes further in laying out the extraordinary harm faced by policyholders trapped in that system. The judge found that irreparable harm remains both “unmistakable and severe,” pointing to structural bias in the DOAH forum and the inability of insureds to access meaningful discovery, motion practice, or judicial review.

The judge acknowledged the growing pattern of Citizens being awarded fees and costs in that venue, while policyholders are denied even basic procedural fairness. In effect, the court called out the system for what it is, a one-sided administrative process that deprives citizens of their constitutional right to a day in court.

This ruling also rejected Citizens’ argument that it would suffer harm if the stay were lifted. Instead, the judge noted that any action temporarily enjoined could simply resume if Citizens ultimately prevails on appeal. In contrast, allowing the stay to remain would risk denying policyholders their core constitutional protections. That’s a tradeoff the court was not willing to make, and rightly so.

The court emphasized that Florida homeowners insured by Citizens are being treated differently from those insured by private carriers, who are afforded meaningful protections under Florida Statute §627.70154. This unequal treatment, especially in matters as serious as access to justice, violates the basic tenets of due process.

It’s worth remembering that this all stems from a statute that allows Citizens to bypass the court system entirely and force disputes into an administrative forum that it did not have to negotiate for, and that offers no discount or alternative to the homeowner. The statute created a trap door out of court and into a forum where Citizens has historically dominated. Now, thanks to this case, that door has been slammed shut, at least for the time being.

This is another major step forward in what has become a defining legal battle for property insurance policyholders in Florida. The courts are recognizing that even a state-created insurer like Citizens cannot bypass the Constitution in the name of efficiency. As this case moves forward on appeal, the injunction remains in place, and so does the signal sent by the trial court: constitutional rights aren’t optional, and arbitration by ambush has no place in Florida’s justice system.

Another question is why Florida’s legislators ever passed a law that deprives Floridians of protections under Florida’s Constitution. Some may suggest that this is another example of Florida’s political leadership being more in bed with insurance lobbyists than caring about Florida’s homeowners.

Thought For The Day

“If we are to keep our democracy, there must be one commandment: Thou shalt not ration justice.”
—Judge Learned Hand

¹ Alvarez v. Citizens Prop. Ins. Corp., No. 25-CA-006626 (Fla. Cir. Ct. [Hillsborough] Aug. 21, 2025).