MIAMI, Fla. — A Miami-Dade Circuit Court judge denied Citizens Property Insurance Corporation's motion to dismiss a lawsuit and compel arbitration, ruling that the state-mandated arbitration process raises serious due process concerns for Florida policyholders.
Judge H. Hirsch issued the order May 7, 2026, in a case brought by policyholders Victoria Quintana and Luis Rodriguez against Citizens, Florida's state-backed insurer of last resort.
At the heart of the ruling is a question of fairness: whether forcing Citizens policyholders into arbitration conducted exclusively by the Florida Department of Administrative Hearings (DOAH) — a state agency that receives funding from Citizens — violates their constitutional right to due process.
Recent statutory changes in Florida made arbitration mandatory for Citizens policyholders who file claims, eliminating the option of a jury trial entirely.
Under those changes, arbitration must be conducted by DOAH — a sister agency to Citizens within Florida's executive branch — and our WPTV investigation previously found those judges' $250,000 salaries are funded by Citizens — the same insurer defending the claim being litigated.
"It is beyond dispute that an impartial decision maker is a core guarantee of due process, fully applicable to adjudicatory proceedings before administrative agencies," Hirsch wrote, citing established legal precedent.
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Insurance attorney Aaron Bass said the ruling could mark a turning point.
"I think there is the potential for the floodgates to be opened up here, I really do. It takes just one person — a trickle — and then the dam bursts. I think we will see other judges rule on this — I think we will see disagreements with the appellate courts and this will go to the Supreme Court," Bass said.
Our analysis of a years worth of final hearing results found policyholders lost 99% of cases, sparking questions about fairness, and emails we obtained in a public records request show lawmakers questioned whether the process is constitutional.
Our previous reporting also exposed a clause added to renewal policies — expanding arbitration even further.
After backlash from policyholders and attorneys, lawmakers drafted a bill to restore homeowners’ option for a jury trial — but it died in the 2026 legislative session.
All the while, we listened to homeowner after homeowner tell WPTV they’re stuck in limbo—after learning their denied Hurricane Milton claims are being decided by a judge paid by the very insurer that denied them.
"If Floridians reasonably conclude that the alternative dispute resolution process upon which Citizens seeks to rely in the case at bar is not a system of just adjudication but merely a well-dressed scheme to dispose of policyholders' claims quickly, quietly, and on the cheap, the appearance-of-impropriety prong of the due process guarantee may be implicated," Hirsch wrote.
The judge noted that policyholders suing Citizens have no say in choosing their arbitrators, unlike in traditional arbitration proceedings where each side selects a representative.
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He also noted that claims against Citizens are of the type historically resolved by jury trial in Florida — and still are, against every other insurer in the state.
“The issue here is the unease and distrust naturally engendered when a system of alternative dispute resolution eliminates juries — not as an option, but mandatorily,” Hirsch wrote, citing a previous order he issued. “Citizen’s policyholders, and Floridians generally, are entitled to ask — indeed cannot help but ask — why they must be stripped of their right to trial by jury as a condition of insuring their homes.”
Hirsch continued on to call the relationship between Citizens and DOAH "symbiotic," relating it to the latin phrase "Manus manum lavat," which means "One hand washes the other."
"The symbiotic relationship between Citizens and DOAH serves only to add to the appearance of impropriety," wrote Hirsch. "Manus manum lavat, said the Roman jurisconsulti: one hand washes the other. Must Floridians not think the same here?"
Citizens defended its arbitration system in a statement, saying "multiple other state court judges have considered the same issue and expressly found the arbitration process to be completely lawful."
In the rest of his statement to WPTV, Citizens spokesperson Michael Peltier wrote the following:
Hundreds of governmental entities throughout Florida use DOAH to resolve disputes and pay the entire bill for that cost as required by Florida law. This law ensures the cost to use DOAH is not a drain on general revenue. Florida law prevents any adverse employment action based on how a DOAH judge rules in any case, ensuring DOAH judges remain fair and impartial.
A 2023 law expressly authorized Citizens to use DOAH to resolve insurance claims as a lower cost alternative to state court.
The money Citizens has saved on attorney’s fees by using the faster DOAH process has been passed on to our policyholders just as lawmakers and Governor DeSantis intended. Citizens recently lowered its rates by almost 5% due solely to these DOAH-related savings. For these reasons, Citizens remains committed to the DOAH process.
Bass, however, disagreed.
"A true arbitration is where the parties work together to decide the arbitrator or arbitrators that they can both agree with," said Bass. "This judge talks about that financial connection between Citizens and the Division of Administrative Hearings, and how these quote-unquote arbitrators are chosen only by Citizens and paid for by Citizens, and how it is a denial of due process."
Bass said the ruling does not stop other Citizens claims from moving through arbitration, but believes it may give attorneys litigating Citizens claims something to argue with.
"They now have a ruling from a circuit court judge who has said, 'Whoa, this is unfair at every level.'"
Hirsch wrote in the order that he had previously sought guidance from the Florida Office of the Attorney General on the due process question, ordering that office to submit a legal memorandum by May 1. Hirsch said the attorney general's office did not respond, did not request additional time, and did not contact the court.
"The Office of the Attorney General has not filed a responsive pleading. It has not moved for an enlargement of time in which to file such a pleading. It has not contacted my chambers," Hirsch wrote.
WPTV reached out to the attorney general's office to independently verify whether the order was received, and whether a response was issued. The office told us they are working to provide us a response.
Citizens' motion to dismiss and to compel arbitration was denied.
This story was reported on-air by a journalist and has been converted to this platform with the assistance of AI. Our editorial team verifies all reporting on all platforms for fairness and accuracy.