Judge Melissa M. Polo issued a temporary injunction to prevent Citizens from sending cases to arbitration at the state Division of Administrative Hearings instead of potentially facing civil lawsuits. Polo wrote that Tampa homeowner Martin Alvarez “demonstrated a substantial likelihood of success” on his arguments that the arbitration process violates part of the Florida Constitution designed to ensure access to courts.
“Plaintiff also established that he and similarly situated Citizens policyholders will suffer irreparable harm absent injunctive relief,” Polo wrote. “Specifically, enforcement of the arbitration clause at issue compels insureds (policyholders) into a forum that lacks neutrality, discovery, motion practice and meaningful judicial review.”
The ruling could have far-reaching implications, as it at least temporarily blocks the arbitration process statewide — not just for Alvarez. The process is one in a series of moves by the state and the insurance industry in recent years to curb lawsuits that they blame for driving up costs.
Citizens leaders and state insurance regulators approved the arbitration process in 2022, and the Legislature put it into law in 2023, according to a state House staff analysis.
“We have received the order and our legal team is working on a response,” Citizens spokesman Michael Peltier said Friday afternoon in response to the temporary injunction. “State law specifically authorizes the DOAH (Division of Administrative Hearings) process and we believe that the law is constitutional. Beyond that, we do not comment on pending litigation.“
Alvarez filed a lawsuit and a request for a temporary injunction on July 11, about a month after Citizens sent his claim dispute to the Division of Administrative Hearings for arbitration. Along with arguing the process violates the constitutional right to access to courts, Alvarez contends it violates due-process rights.
Documents filed in the lawsuit and at the Division of Administrative Hearings said Alvarez’s home was damaged in October 2024. Citizens’ request for an arbitration hearing indicated the dispute involves $72,811.
The constitutional issues stem from a decision by the Citizens Board of Governors in 2022 to approve what is known as a “policy endorsement” that allows Citizens or policyholders to direct claims disputes to the Division of Administrative Hearings, according to the state House staff analysis. That has led to Citizens sending hundreds of cases to the division, keeping them out of the civil court system.
Arbitration hearings are conducted by administrative law judges, who are state employees. Critics argue that the arbitration process has overwhelmingly resulted in disputes resolved in Citizens’ favor.
Citizens has argued, in part, that the process helps resolve disputes more quickly. But Alvarez’s motion for a temporary injunction said arbitration is not a “product of mutual assent and bargaining between the parties” and that private insurers don’t have similar authority to effectively require arbitration.
“Because the (Citizens) arbitration requirement … and the policy create different classes of individuals being treated differently, the arbitration requirement violates the plaintiff’s due process,” the motion said.
The state House this spring approved a bill (HB 643) that would have revamped the arbitration process, but the bill did not pass the Senate.
Citizens was created as an insurer of last resort but became the state’s largest insurer in recent years amid problems in the private industry. Insurers blamed litigation for the problems, and the Legislature in 2022 and 2023 passed laws aimed at helping shield carriers from costly lawsuits.
Citizens had 781,467 policies as of last week.
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Citizens Insurance says it could be ‘irreparably harmed’ if it’s not allowed to use a controversial claims-dispute process
This article appears in Jul 31 – Aug 6, 2025.