Solomon Mediation and Arbitration

The Fifth District has found that an administrative rule impermissibly modifies and enlarges section 627.7015, Fla. Stat., which provides for the mediation of claims under personal lines and commercial residential policies before commencement of the appraisal process or litigation.  See State Farm Florida Ins. Co. v. Unlimited Restoration Specialists, Inc., No. 5D11-2456 (Fla. 5th DCA Mar. 23, 2012).  Under section 627.7015, the insurer waives its contractual appraisal rights only where it fails to notify the insured of the right to mediation, or where the insurer itself requests mediation and mediation is unsuccessful.  However, Rule 69B–166.031(10)(c) of the Florida Administrative Code impermissibly allows the insured the option of whether to proceed with appraisal following an unsuccessful mediation that the insured, itself, requested.

 For the full case, click here.  

The Florida Supreme Court has adopted significant changes to rule 1.720 (Mediation Procedures), effective January 1, 2012.  In order for a party to be deemed as having appeared at mediation through the physical appearance of the party's representative, that representative must have "full authority to settle." Pursuant to the amended rule, such representative must be the "final decision maker with respect to all issues presented by the case who has the legal capacity to execute a binding settlement agreement on behalf of the party."  It is important to note that ten (10) days prior to appearing at mediation through its representative, the party must file a Certification of Authority, identifying the party representative and confirming that such individual has the full authority to settle as defined above.  Further, the court "shall" impose sanctions if a party fails to appear at a noticed mediation, and the failure to file a Certification of Authority shall create a rebuttable presumption of a failure to appear.
For the full rule change, click here.