Florida Supreme Court Approves Mandatory Mediation For All Homestead Foreclosure Cases in Florida State Courts

On December 28, the Florida Supreme Court approved a model administrative order that requires mediation for all foreclosure cases in Florida state courts involving residential homestead property unless (i) the plaintiff and borrower agree otherwise, (ii) effective pre-suit mediation that substantially complies with the model administrative order’s mediation program requirements has been conducted, or (iii) a borrower opts out of the mediation process. In re Final Report and Recommendations on Residential Mortgage Foreclosure Cases, No. AOSC09-54 (Fl. Sup. Ct. Dec. 28, 2009). A task force, charged with recommending policies, strategies, and methods for easing the backlog of pending residential mortgage foreclosure cases in Florida recommended the model administrative order, which the Florida Supreme Court approved with minor changes. Features of the model administrative order’s mediation program include (i) referral of the borrower to foreclosure counseling prior to mediation, (ii) early electronic exchange of borrower and lender information prior to mediation, and (iii) the ability of a plaintiff’s representative to appear at mediation by telephone. Under the model administrative order, a designated mediation manager must schedule a mediation program between 60 and 120 days after a suit is filed. Mediation program costs are to be paid initially by plaintiffs, but these costs are recoverable in the final judgment of foreclosure or settlement order.