Justia Florida Supreme Court Opinion SummariesArticles Posted in Arbitration & Mediation
Mintz Truppman, P.A. v. Cozen O’Connor, PLC
The Supreme Court quashed the decision of the court of appeal issuing a writ of prohibition to prevent the circuit court from exercising jurisdiction over certain claims, holding that the court of appeal erred in issuing the writ.Plaintiff brought this lawsuit against an insurance company and the law firm representing the company in the underlying suit Plaintiff brought against the insurer, arguing that Defendants violated confidentiality requirements applicable to a mediation. After the circuit court denied Defendants' motions to dismiss Defendants petitioned the Third District relief. The Third District granted a writ of prohibition, concluding that the circuit court had exceeded its jurisdiction by entertaining Defendants' collateral estoppel affirmative defense. The Supreme Court quashed the decision below, holding that the writ of prohibition was used in an improper manner here. View "Mintz Truppman, P.A. v. Cozen O'Connor, PLC" on Justia Law
Airbnb, Inc. v. Doe
The Supreme Court quashed the decision of the Second District Court of Appeal reversing the circuit court's grant of Airbnb, Inc.'s motion to compel arbitration, holding that the circuit court did not err in compelling arbitration.Plaintiffs brought this complaint against Airbnb, alleging constructive intrusion and loss of consortium. After a hearing, the circuit court granted Airbnb's motion to compel arbitration and stayed the underlying lawsuit pending arbitration, finding that the parties entered into an express agreement that incorporated the the American Arbitration Association (AAA) rules, requiring Airbnb to submit the issue of arbitrability to the arbitrator. The Second District Court reversed, concluding that the arbitration provision and the AAA rule it referenced did not amount to "clear and unmistakable" evidence that the parties agreed to arbitrate arbitrability. The Supreme Court reversed, holding that Airbnb's terms of service that incorporate by reference rules that expressly delegate arbitrability determinations to an arbitrator constitute clear and unmistakable evidence of the parties' intent to authorize an arbitrator, rather than a court, to resolve questions of arbitrability. View "Airbnb, Inc. v. Doe" on Justia Law
Tribeca Asset Management, Inc. v. Ancla International, S.A.
The Supreme Court quashed the decision of the Third District Court of Appeal concluding that the circuit court had personal jurisdiction over Tribeca Asset Management, Inc., holding that the parties' agreement did not provide for arbitration in Florida.Tribeca and Ancla International, S.A. entered into a confidentiality agreement. Ancla later filed a petition to compel arbitration. The circuit court dismissed the petition for lack of personal jurisdiction, concluding that a provision in the parties' agreement did not contain a forum selection clause and merely contained a choice of law provision. The Third District reversed, concluding that the provision contained a forum selection clause. The Supreme Court reversed, holding that the agreement did not provide for arbitration in Florida. View "Tribeca Asset Management, Inc. v. Ancla International, S.A." on Justia Law
Hayslip v. U.S. Home Corp.
The Supreme Court held that a deed covenant requiring the arbitration of any dispute arising from a construction defect runs with the land such that it is binding upon a subsequent purchaser of the real estate who was not a party to the deed.The home in this case was constructed and sold by U.S. Home Corp. to the original purchasers. The original deed contained an arbitration provision and several covenants, conditions and restrictions concerning the home that bound both the original purchasers and subsequent purchasers. The original purchasers later sold the home to Plaintiffs, who brought suit against U.S. Home pursuant to Fla. Stat. 553.84. U.S. Home filed a motion to stay and compel arbitration, which the circuit court granted. The Second District Court of Appeal affirmed, concluding that a valid arbitration agreement existed and that it was a covenant running with the land. The Supreme Court approved the decision below, holding that Plaintiffs were bound by the arbitration provision. View "Hayslip v. U.S. Home Corp." on Justia Law
Krol v. FCA US, LLC
The Supreme Court held that the Federal Trade Commission's "single document rule," promulgated under the Magnuson-Moss Warranty Act, 15 U.S.C. 2301-2312, does not require the disclosure of a binding arbitration agreement.Petitioner bought a truck from Respondent. The parties' retail purchase order included a binding arbitration agreement for any dispute related to the truck's purchase. Petitioner eventually filed suit under the Act, and Respondent successfully moved to compel arbitration. Petitioner appealed, arguing that the arbitration agreement was unenforceable because it was not disclosed in a single document with other warranty terms, in violation of the Federal Trade Commission's (FTC) single document rule. The Fifth District affirmed, holding that a binding arbitration agreement is not an item covered by the single document rule's disclosure requirements. The Supreme Court approved the Fifth District's decision, holding that the existence of a binding arbitration agreement is not among the disclosures required by the FTC's single document rule. View "Krol v. FCA US, LLC" on Justia Law
Hernandez v. Crespo
Lualhati Crespo and her husband filed a complaint against Petitioners, Dr. Eileen Hernandez and Women’s Care Florida, after their son was delivered stillborn. Petitioners filed a motion to stay proceedings and compel binding arbitration pursuant to a medical malpractice arbitration agreement between Mrs. Crespo and Petitioners. The Fifth District Court of Appeal concluded that the agreement was void as against public policy. The Supreme Court approved the decision below, holding that the arbitration agreement was void and violated public policy because it included statutory terms favorable only to Petitioners, thereby disrupting the balance of incentives the Legislature carefully crafted to encourage arbitration. Remanded. View "Hernandez v. Crespo" on Justia Law
Mendez v. Hampton Court Nursing Center, LLC
When Hampton Court Nursing Father admitted Father to its nursing home facility, Son and Hampton Court signed a a nursing home contract that included an arbitration clause. Father did not sign the contract. Son later filed suit on Father’s behalf, alleging negligence and statutory violations. The circuit court granted Hampton Court’s motion to compel arbitration and stay the judicial proceedings. The Third District Court of Appeal affirmed, concluding that Father was the intended third-party beneficiary of the nursing home contract, and therefore, Hampton Court could bind him to its contract, which Father never signed. The Supreme Court quashed the Third District’s decision, holding that the third-party beneficiary doctrine did not bind Father to the arbitration agreement in the nursing home admission agreement. View "Mendez v. Hampton Court Nursing Center, LLC" on Justia Law
Visiting Nurse Ass’n of Fla., Inc. v. Jupiter Med. Ctr., Inc.
In this contract dispute between a home health care agency, Visiting Nurse Association of Florida, Inc. (VNA), and a hospital, Jupiter Medical Center, Inc. (JMC), an arbitration panel granted VNA damages. JMC filed a motion to vacate the arbitration award, alleging that the arbitration panel construed the contract containing an arbitration provision to be an unlawful agreement. The circuit court dismissed the motion to vacate and granted the motion to enforce the award. The Fourth District Court of Appeal reversed, holding that a court must determine whether a contract is legal prior to enforcing an arbitral award based on the contract. The Supreme Court quashed the Fourth District’s decision, holding (1) the claim that an arbitration panel construed a contract containing an arbitration provision to be an unlawful agreement is an insufficient basis to vacate an arbitrator’s decision pursuant to the Federal Arbitration Act or the Florida Arbitration Code; and (2) the arbitration panel did not exceed its powers in this case. View "Visiting Nurse Ass’n of Fla., Inc. v. Jupiter Med. Ctr., Inc." on Justia Law
Basulto v. Hialeah Auto.
Buyers, a married couple from Cuba who were only able to communicate in Spanish, purchased a vehicle from a Dealership. Two of the documents Buyers signed with regard to the purchase contained arbitration clauses, and all of the documents were written in English. Buyers subsequently sued the Dealership for fraud in the inducement and violation of the Florida Deceptive and Unfair Trade Practices Act. The Dealership moved to dismiss the complaint and/or compel arbitration. The trial court denied the motion, concluding that no valid agreement to arbitrate existed because the arbitration provisions were not agreed upon by the parties and that the provisions were unenforceable because they were procedurally and substantively unconscionable. The Third District Court of Appeal affirmed the trial court’s order denying enforcement of the agreement to arbitrate disputes but reversed the order insofar as it declined to enforce the arbitration on the reverse side of the retail installment contract with respect to Buyers’ claims for monetary relief. The Supreme Court quashed the decision of the Third District and remanded with instructions to reinstate the trial court’s judgment based on controlling precedent. View "Basulto v. Hialeah Auto." on Justia Law
Franks v. Bowers
After undergoing surgery, Decedent died due to complications resulting from a vein being lacerated during surgery. Decedent's wife, Plaintiff, filed a complaint against the doctor who performed the surgery and the doctor's surgical practice for medical malpractice resulting in wrongful death. Defendants moved to compel arbitration based on a financial agreement signed by Decedent prior to his surgery. The trial court entered an order compelling arbitration, and the court of appeal affirmed. Plaintiff appealed,. The Supreme Court quashed the decision compelling arbitration, holding (1) the damages clause of the arbitration provision of the financial agreement violated the public policy pronounced by the legislature in the Medical Malpractice Act; and (2) the offensive clause was not severable from the remainder of the arbitration provision. View "Franks v. Bowers" on Justia Law