Appeals during and after arbitration - state and federal issues.

AuthorBerman, Ceci Culpepper

Arbitration has become very common in courts around the country, including those in Florida. For even the experienced lawyer who is faced with deciding where to pursue a case that could potentially find its way into arbitration, some thought should be given to the appellate ramifications of choosing a state or federal forum initially. The rules compelling arbitration are different in both courts, and the appellate outcome can be dissimilar, depending on which route the lawyer selects.

Florida's Arbitration Provisions

In Florida, arbitration is a favored method of dispute resolution. (1) Florida's Arbitration Code, found in Ch. 682 of the Florida Statutes, reveals the legislature's position favoring arbitration. By statute, if a party moves to compel arbitration and arbitration is denied, an automatic, interlocutory appeal is authorized. (2) Similarly, if a stay of arbitration is granted, an immediate appeal is allowed. (3) Jurisdiction for the appellate courts to hear these appeals is found in Fla. R. App. P. 9.130. Rule 9.130 states that an order determining entitlement to arbitration is a nonfinal, appealable order. Florida courts have followed this jurisdictional grant. (4)

Interestingly, no statutory provisions exist allowing an appeal from an order granting a motion to compel arbitration or denying a stay of arbitration. This circumstance-one of the most important facets of Florida's law relating to arbitrations and their subsequent appeals--differs from federal law. Unlike the appellate process in place in federal court for issues surrounding arbitration, the Florida judiciary has stepped in and allowed immediate appeal of an order denying a request to stay arbitration. Florida courts have held that an order denying a stay of arbitration effectively compels arbitration and, therefore, is also a nonfinal, appealable order under Rule 9.130. (5)

In reviewing issuance of a circuit court order denying a motion to compel arbitration, the appellate court generally reviews that determination de novo. (6) Thus, little deference is given to the circuit court. This means that the appellate court will address the same questions as those considered by the lower court: 1) whether a valid written agreement to arbitrate exists; 2) whether an arbitrable issue exists; and 3) whether the right to arbitration was waived. (7)

F.S. [section] 682.20 also provides for appeals arising from other arbitration issues, including appeals of orders confirming or denying confirmation of an arbitration award, orders modifying or correcting an award, and orders vacating an award without directing a rehearing. (8) The ability to appeal immediately an order vacating an award when a rehearing before the arbitrators has not been directed is unique to Florida.

Florida's Arbitration Code deals with vacating an award in F.S. [section] 682.13. There are specific circumstances that allow for vacatur, and those enumerated in the statute are the only acceptable grounds. (9) According to [section] 682.13(3), there are certain situations in which, when vacating an award, a court may order a rehearing before new arbitrators. Despite the statute's permissive language, Florida courts have held that a court must order a rehearing...

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