11-2 Public Policy Considerations

• Jurisdiction: United States

11-2 Public Policy Considerations

In Mintz & Fraade, P.C. v. Beta Drywall Acquisition, LLC,⁴ Arizona and New York clients hired a New York law firm to help them purchase a Florida company. When the clients later sued the law firm for malpractice, the firm filed a motion to compel arbitration. The subject arbitration clause provided:

The parties agree that they shall be deemed to have agreed to binding arbitration in New York, New York, with respect to the entire subject matter of any and all disputes relating to or arising under this Retainer Agreement, including, but not limited to, any fee disputes.⁵

Although clearly broad enough to cover legal malpractice claims, the plaintiffs argued that the clause was unenforceable under Florida law because it called for arbitration in New York rather than in Florida. The court rejected this argument because, as a transaction involving interstate commerce, federal law controlled and required the law firm's motion to be granted.⁶

In Johnson, Pope, Bokor, Ruppel & Burns, LLP v. Forier,⁷ the question arose whether agreements requiring legal malpractice claims to be submitted to arbitration violate Florida's public policy. The trial court said they did, but the Second District Court of Appeal disagreed.⁸ Finding no cases on point, and unable to locate any ethics rule prohibiting such clauses, it ruled that the provision was enforceable.⁹

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Notes:

^[4] Mintz & Fraade, P.C. v. Beta Drywall Acquisition, LLC, 59 So. 3d 1173 (Fla. 4th Dist. Ct. App. 2011).

^[5] Mintz & Fraade, P.C. v. Beta Drywall Acquisition, LLC, 59 So. 3d 1173, 1175 (Fla. 4th Dist. Ct. App. 2011).

^[6] Mintz & Fraade, P.C. v. Beta Drywall Acquisition, LLC, 59 So. 3d 1173, 1175-76 (Fla. 4th Dist. Ct. App. 2011).

^[7] Johnson, Pope, Bokor, Ruppel & Burns, LLP v. Forier, 67 So. 3d 315 (Fla. 2d Dist. Ct. App. 2011).

^[8] Johnson, Pope, Bokor, Ruppel & Burns, LLP v. Forier, 67 So. 3d 315, 316 (Fla. 2d Dist. Ct. App. 2011).

^[9] Johnson, Pope, Bokor, Ruppel & Burns, LLP v. Forier, 67 So. 3d 315, 319 (Fla. 2d Dist. Ct. App. 2011).