BOCA RATON, Fla. — Frustration continues to mount among Citizens Insurance policyholders and their attorneys after a last-minute collapse of a bill they say would have made the claims process more fair.
WATCH BELOW: 'The fact that they won't let a homeowner pull out is insane,' Attorney John Tolley tells WPTV's Kate Hussey
The proposal came after months of backlash over the state-run insurer's controversial arbitration process — a system that forces claim disputes before a single judge paid by Citizens itself.
A WPTV investigation found contracts showing Citizens pays those judges up to $250,000 a year. Our analysis of a year of cases found Citizens won 99% of them.
Emails we obtained in a public records request show lawmakers questioned whether the process is constitutional. Our reporting also exposed a clause added to renewal policies —expanding arbitration even further. All the while, we listened to homeowners 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.
"How are they able to just pay the judge, I'm confused, is that legal?" said Brandi Roberts of Fort Pierce, who pushed back on her denied Hurricane Milton damage claim.
WATCH BELOW: 'I've never seen odds so stacked against the policyholder,' Ardalan Montazer tells WPTV's Kate Hussey
"And we can't win. How you supposed to win?" said Vero Beach policyholders, Jason and Gloria Nitch, also denied a hurricane claim.
Judges and attorneys also questioned the fairness of the arrangement.
"I think it completely denies people the right to access the courts," attorney Aaron Bass said.
Lawmakers responded by drafting a bill that would have made arbitration optional.
"The optics are not good, and so this is what we're trying to fix," Rep. Yvette Benarroch, R-Fla., said.
The bill, however, died in the rules committee of the Senate. Now attorneys say the odds are even more stacked against homeowners.
WPTV Investigates
Citizens expands arbitration process that wins 99% of homeowner disputes
"It seems like there's been an attitude adjustment, and all of a sudden, instead of allowing for a walk away or these nominal amounts, it looks like citizens is going to try to pursue these claims all the way to getting judgments against the client to try to reimburse themselves for attorneys fees," said Attorney John Tolley of JT Law Firm in Boca Raton.
Tolley, who has represented multiple clients against Citizens, says his many of his clients, after realizing their chances of losing, are trying to back out of arbitration — if they go to a final hearing and lose, they could be forced to pay Citizens' attorney fees.
"A lot of the orders that I've seen have been $50,000 in attorney's fees and then 10 to $12,000 in costs," Tolley said.
Tolley says homeowners typically have the option to walk away from a claim.
"Most of the time, you can withdraw a claim," Tolley said.
WATCH BELOW: 'I don't think it's constitutional at all,' attorney Aaron Bass tells WPTV's Kate Hussey
But now, Tolley says Citizens isn't letting homeowners do that. In one case, his client filed to "dismiss her claim and withdraw her intent to litigate." The same day, a judge denied it — ruling the arbitration agreement was "irrevocable" and could not be dismissed, writing "neither party can unilaterally dismiss the proceeding and that "closing this matter would deprive Citizens" of its "contractual right."
That ruling came despite a Citizens press release stating the point of arbitration is to "resolve disputes much faster" and "save both sides considerable attorneys fees and costs."
"So, the fact that they won't let a homeowner pull out is insane, because they're spending even more money going to that final hearing," Tolley said.
"Have you heard from any other attorneys having similar situations to what you're dealing with, with judges denying requests to withdraw a claim?" Investigative Reporter Kate Hussey asked Tolley.
"Oh yeah," Tolley replied. "This is a common problem with all plaintiff's attorneys who are representing policyholders, they're having issues getting the cases dismissed."
WPTV Investigates
'CHAOS': Judges clash over Citizens Insurance arbitration process
At an April 30 hearing, Tolley's law partner Josh Brownlee pushed back, arguing Citizens has no authority to force a homeowner to pursue an insurance claim. Citizens asked the judge to proceed with arbitration, arguing that once arbitration was triggered, it can’t be undone by a last-minute withdrawal, especially one filed just days before the hearing.
The judge agreed.
"Therefore, I am going to enter an arbitration award in the amount of $0," Judge Douglas Ware said.
"It's really putting a gun to the homeowner's head," Tolley said. "This is the clearest example of denying a constitutional right. You are forcing these people to take out these policies and then forcing them to give up their right to a jury trial and go to an arbitration court. This is fundamentally against the principles that America was established on, that our constitution was based on."
Citizens continues to defend its arbitration process as fair and constitutional, pointing to judges who have ruled the arbitration process as constitutional, allowing it to continue. We reached out to Citizens Property Insurance for comment, and the insurer is still working on getting us a response.
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.