Arbitration & Mediation

Third DCA Notes "Exceptional Issue" but Dodges Arbitration Question

By Christopher B. Hopkins, Esq.

The Third DCA (Cope, Gersten, and Salter) accepted a "writ of mandamus or certiorari" regarding an order on a motion to compel arbitration -- which, within itself is procedurally unusual -- but dodged the main arbitration issue.

Typically, the Florida Arbitration Code holds that orders on motions to compel arbitration are appealable. Here, there was a written order and a transcribed oral ruling -- but the party seeking appellate relief chose to request jurisdiction through a writ rather than take a "straight up" appeal. While a curiosity, the court didn't bother to explain that either.

In The Gencom Group v. Garcia Stromberg, LLC et al., an architectural firm entered into several contracts with developers which listed Gencom as the owner representative but Gencom never signed. All contracts included arbitration clauses. Disputes arose. Gencom claimed, under F.S. 682.03(4), it never signed the contracts and, as a non-signatory, could not be compelled to arbitrate.

The trial court entered an order compelling arbitration but it did not mention Gencom. At the hearing, the trial court's "oral announcement suggested that Gencom was not required to arbitration..." This explains the basis for the writ although, again, an appeal would likely be a more simple vehicle.

The Panel hinted that there was a legal argument that Gencom fell into the "exceptional situation in which a contract can be enforced against a nonparty" but then gave little information other than a few cites. We are guessing that this case will return, on a more complete order, with a dispute over third party beneficiary status.

Full post as published by Florida Arbitration Law on May 07, 2010 (boomark / email).