Faced with a motion to compel arbitration? On August 18, 2021, an appellate opinion was rendered dealing with waiver of arbitration in Florida. If you are involved in a lawsuit, and arbitration is discussed, you want to read this case. To read more FREE FLORIDA LEGAL COMMENTARY about arbitration in Florida, CLICK HERE.
What?
Many contracts from corporations have a mandatory arbitration clause. Arbitration is a private court with a private judge. No cameras no public access. No jury trial. Those clauses in contracts generally state that any disputes have to go arbitration. NOT state or federal court. There are different ways to handle an arbitration. Your contract can spell out those rules, or rely on rules and procedures from organizations like AAA or JAMS. While many people like the “private” nature of arbitration, experienced trial lawyers may provide greater insight.
Advantages?
I think that a real trial attorney would tell you that there are not a lot of cost or fee savings with an arbitration vs. a trial in a Florida court. State or federal. In court, you don’t pay the judge. In arbitration, you pay the arbitrator, anywhere from about $500- $800 an hour. Some contracts require you to have a panel of 3 arbitrators! Big arbitration bill for the arbitrators. And in Florida state court, seniors can try to get an expedited trial. So, is arbitration really faster and less expensive? If a lawsuit is filed, the defendant may try to force you to arbitration. Deciding if a state or federal court is better, or arbitration is, is a tactical or strategic decision. Defendants who don’t want to be in state or federal court can try to file a Motion to Compel Arbitration. But what about waiver?
What is Waiver
Waiver is generally the relinquishment of a known right. You give up a right to claim something, like a defense, if you knowingly renounce it or don’t address it. In a state or federal court, if someone files a motion to compel arbitration, but actively participates in the court proceeding, she can be alleged to have WAIVED arbitration. If there is waiver of arbitration Florida, then you are stuck in state or federal court.
Waiver of Arbitration Florida Front and Center
On August 18, 2021, the 4th District Court of Appeal issues its opinion in Marino Performance, Inc. v. Zuniga. You can read the opinion for FREE by clicking their site HERE. This case dealt with a motion to compel arbitration. And whether the right to arbitrate was waived. Finally, estate and trust beneficiaries should know about a specific Florida probate code law on arbitration. Fla. Statute 731.401.