Yesterday, the Supreme Court of Florida issued an Administrative Order (AOSC11-54) stating no new case may be referred to the mediation programs which were established pursuant to the previously issued Administrative Orders AOSC09-54 and clarified in AOSC10-57.  This comes as a welcome relief for many lenders.  The termination of the program will decrease the costs and fees associated with the program which in many instances were borne by the lenders.

In 2009, the Supreme Court of Florida attempted to establish a means for the court system to address the overwhelming number of mortgage foreclosure cases by requiring mandatory mediation.  The Court reviewed the reports on the program and determined it cannot justify continuation of the program.  In light of the reports, the Court has terminated the program.

For cases already referred to and pending in a mediation program on or before December 19, 2011, the statewide managed mediation program will remain in the program through completion of mediation.  For those new cases filed after December 19, 2011, there will no longer be a requirement for mandatory mediation.

For those cases filed after December 19, 2011, the defendants and their counsel can still request mediation under the Florida Rule of Civil Procedure 1.700 and related rules. Go here for the Client Advisory WWR sent earlier relating to the changes to Fla. R. Civ. Pro. 1.720.

If you have any questions on this matter, please contact Ms. Cheryl L. Burm, Esq. Cheryl is the managing attorney of the Ft. Lauderdale, Florida office, practicing in the Real Estate Default Group of Weltman, Weinberg & Reis Co., LPA. Cheryl can be reached at 954.740.5215 or cburm@weltman.com.