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Because Florida Senate Bill 2A permits the OIR to allow Insurers to require a claimant to participate in Arbitration, Arbitration will become a staple in the First Party Claim industry in the wake of Hurricane Ian.

What Is Arbitration?

According to JAMS (Judicial Arbitration Mediation Services): “Arbitration is the most traditional form of private dispute resolution. Arbitration is a binding resolution often “administered” by a private organization. There are multiple types of Arbitration. Most arbitration is driven by a pre-dispute contract entered into by the parties, in which they agree that if a dispute should arise, it will never get into the court system. The Federal Arbitration Act, coupled with the state arbitration law of the place of arbitration, generally governs the process. If the parties choose an administering authority, such as JAMS, that authority’s arbitration rules will govern the procedure that will be followed.

By agreeing to arbitration, the parties, perhaps among other things, are waiving their fundamental, constitutional right to a trial by a jury of their peers. They can have no de novo (second trial) after they have gone to arbitration. Unless otherwise agreed, the decision is legally binding and non-appealable, except in extremely limited circumstances, such as in the case of fraud or collusion on the part of the arbitrator.

In general the arbitrator is an impartial person chosen by the parties. The arbitrator reads briefs and documentary evidence, hears testimony, examines evidence and renders an opinion on liability and damages in the form of an “award of the arbitrator” after the hearing. Once confirmed by a court of appropriate jurisdiction, the award can be subsequently entered as a judgment.”

How Does Arbitration Work?

Arbitration can be a very complex process that is largely dependent upon jurisdiction, the governing contract, and which set of arbitral rules are agreed upon.

Contact Us For Assistance

If Arbitration is demanded by the Carrier, or if you would like a free arbitral case review, please contact Aaron Penn at Aaron@CamClaims.Com