Are Arbitration Clauses Enforceable in Florida Business Contracts?
Generally yes. Under the Revised Florida Arbitration Code, an agreement contained in a record to submit an existing or later controversy to arbitration is valid, enforceable and irrevocable, except on a ground that exists at law or in equity for revoking a contract. A court decides whether an agreement to arbitrate exists and whether a dispute is covered, while an arbitrator decides certain other questions.
The code divides the questions. The court decides whether an agreement to arbitrate exists and whether a controversy is subject to it. The arbitrator decides whether a condition precedent to arbitrability has been met and whether a contract containing a valid agreement to arbitrate is enforceable. If a party challenges the agreement in court, the arbitration may continue while the court resolves the issue, unless the court orders otherwise.
A party may ask the court to compel arbitration. If the refusing party does not appear or oppose the motion, the court orders arbitration. If that party opposes it, the court decides the issue summarily and orders arbitration unless it finds no enforceable agreement. The court may not refuse to order arbitration because the claim lacks merit.
A party who says no agreement exists may also ask the court to decide that question summarily. If the court finds no enforceable agreement, it may not order arbitration.
Court cases pause while this is decided. Once a motion to compel is filed, the court stays any judicial proceeding involving the claim until it rules, and if it orders arbitration, the stay continues. A severable claim may be stayed alone. Arbitration is different from mediation, which is explained in mediation in Florida civil cases.
This post is for informational purposes only and does not constitute legal advice or create an attorney-client relationship. A licensed attorney in the relevant jurisdiction should be consulted for advice tailored to specific circumstances.
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