The new federal lawsuit argues that the ability of state-run civil property insurance companies to divert claim disputes to a state arbitrator is unconstitutional and must be stopped.
The complaint, filed in US District Court in Miami on July 10, seeks to prohibit the last resort so-called insurers from enforcing binding arbitration clauses that say they violate the due process and equal protection clauses of the 14th amendment of the U.S. Constitution.
In 2022, citizens, with approval from the Insurance Regulation Office and later from the Florida Legislature, added provisions to all new renewal policies that allow either citizens or policyholders to move claim disputes from the court to binding arbitration.
Since 2024, more than 1,300 conflicts have been filed at state administrative hearings (DOAH) and employs an administrative law judge who will preside over the cases.
However, plaintiffs’ lawyers are almost always citizens who reference disputes in arbitration, and the budget request approved by our board last December shows that citizens plan to spend up to $19.3 million to settle 320 cases a month between 2027 and 2027.
Citizens began frequently introducing disputes to DOAH last year, and the plaintiff’s lawyers began talking about it this spring, saying they would offer citizens an unfair advantage that is not a state court system.
A new lawsuit filed by Hollywood-based lawyer Michael Citron on July 10 by 92-year-old civic policyholder Michael Citron said the provision requiring referrals to DOAH was inserted through an “automatic policy renewal.”
The provisions were “never negotiated,” the lawsuit states. “It was imposed unilaterally.” Policyholders “were not given options, were not asked to consent, and did not say that their fundamental rights were waived.” Furthermore, Williams is not offered premium discounts, election forms, or alternatives to non-arbitration policies, the lawsuit states.
“The impact is phenomenal,” Suit said. “As of July 2025, citizens have won almost every DOAH arbitration conducted,” under the regulations.
“What’s worse,” the lawsuit continues. “Policies who try to dismiss their claims will be punished. Citizens regularly request lawyer fees, and Doah Alj (administrative law judge) will certainly acknowledge it.”
Through his daughter, Williams filed a notice intended to litigate after citizens denied allegations on his roof and interior content, which Hurricane Helen said occurred on September 26th last year as tropical storm force winds spread across Miami-Dade County.
In its rejection of the allegation on October 11, citizens accused that “loss was caused by a surge, not a covered hurricane or wind event,” the lawsuit said.
During the arbitration, citizens opposed all constitutional opposition brought by Williams, and the lawsuit continues.
An administrative law judge not named in the complaint has agreed with the citizens and refused to provide necessary disclosures under state law. This is stated in the financial relationship between Door and the citizen and the fact that his spouse has previously served as a citizen’s employee and is currently an executive within the insurance industry.
Williams’ arbitration will remain set up for hearings by the Zoom Conference, the DOAH website shows.
Civic spokesman Michael Peltier declined to comment on the pending lawsuit.
However, he defended the company’s arrangement with Door, saying, “it provides a fairly and efficient process established for policyholders who have to wait nearly two years on average for a solution.”
Citron said he was motivated to file a lawsuit because of “a deep shock about what’s going on with Florida policyholders.”
“No matter what the outcome – a win, a loss, or a draw – the public deserves to know what’s embedded in their policies,” he said. “This support strips consumers of basic rights, and the burden is falling straight on the shoulders of citizen policyholders, many of which are already financially vulnerable and rely on state-owned insurance.”
Ron Burtibise covers South Florida Sun Sentinel’s business and consumer issues. He can be contacted by telephone at 954-356-4071 or by email at rhurtibise@sunsentinel.com.
