REUTER RECYCLING OF FLORIDA, INC., A FLORIDA CORPORATION, APPELLANT,
v.
CITY OF DANIA BEACH; CITY OF HALLANDALE BEACH; CITY OF PEMBROKE PINES; AND CITY OF POMPANO BEACH, APPELLEES

Fla. 4th DCA | 2003-11-26
No. 4D03-386
GUNTHER and MAY, JJ„ concur.
859 So. 2d 1271 Florida District Court of Appeal, Fourth District (2003) Positive Treatment
Cited by 4 cases

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Synopsis

Reuter Recycling challenged a trial court's refusal to enjoin arbitration of claims that were time-barred under the parties' arbitration agreement. The Fourth District Court of Appeal reversed, holding that the arbitration agreement clearly excluded time-barred claims and that the trial court erred in allowing arbitrators to determine arbitrability on this issue.


Holding

The court held that the arbitration agreement unambiguously excluded time-barred claims from arbitration. The court further held that absent clear and unmistakable evidence that parties agreed to have arbitrators determine arbitrability itself, courts—not arbitrators—should determine what claims fall within the scope of the arbitration agreement. The trial court erred in refusing to enjoin arbitration of time-barred claims.


Headnotes

[1] A trial court's refusal to enjoin arbitration of claims excluded by an arbitration agreement constitutes irreparable harm, justifying appellate intervention.

[2] Arbitration agreements can expressly exclude claims barred by the applicable statute of limitations.

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Key Quotes

“A legal remedy is inadequate in this case, as no legal remedy can compensate ... for having to allegedly undergo an arbitration process in which they did not agree to participate.”

Establishes that injunctive relief is the appropriate remedy when a party is forced to arbitrate claims outside the scope of the arbitration agreement.

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Facts & Procedural History

Reuter Recycling and the Cities (Dania Beach, Hallandale Beach, Pembroke Pines, and Pompano Beach) had an arbitration agreement that expressly exclude…

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Opinion of the Court
FARMER, C.J.

FARMER, C.J.

We reverse a trial judge’s order refusing to enjoin binding arbitration. The claims sought to be arbitrated are excluded by the arbitration agreement. Thus Reuter is irreparably harmed by the trial court’s refusal to enjoin arbitration of claims not included in an agreement to arbitrate. See K.W. Brown & Co. v. McCutchen, 819 So. 2d 977, 979 (Fla. 4th DCA 2002) (“A legal remedy is inadequate in this case, as no legal remedy can compensate ... for having to allegedly undergo an arbitration process in which they did not agree to participate. In the absence of injunctive relief, [a party] would be forced to proceed with an arbitration proceeding to which they did not ... consent.”). With arbitration agreements, the rule is effectually that the presumptive remedy is specific performance, regardless of whether the ultimate decision is for or against arbitration of the claim in issue.

Reuter established that the subject agreement to arbitrate did not include claims barred by the applicable statute of limitations. The contract states:

“All claims, disputes and other matters in question arising out of, or relating to, this Agreement or the breach thereof, shall be decided by arbitration .... The demand for arbitration shall be made within a reasonable time after the claim, dispute or other matter in question has arisen, and in no event shall it be made when institution of legal or equitable proceedings based on such claim, dispute or other matter in question would be barred by the applicable statute of limitations.”

We do not find this provision ambiguous. It expressly excludes time-barred claims from the agreement to arbitrate.

Even if the agreement to arbitrate' were ambiguous, we would still find that the parties had not agreed to have the arbitrators determine the issue of arbitrability. As we said in Corporate Securities Group Ltd. v. Lind, 753 So. 2d 151 (Fla. 4th DCA 2000), where we construed the functionally identical federal arbitration statute:

“the question whether the arbitrators or the courts have the primary power to determine arbitrability depends on whether the parties agreed to submit the question of arbitrability itself to arbitration.”

753 So. 2d at 152. We now make clear that the same rule applies to agreements covered by the Florida Arbitration Code.

The rule is that “courts should not assume that the parties agreed to arbitrate arbitrability unless there is ‘clea[r] and unmistakable]’ evidence that they did so.” Lind, 753 So. 2d at 152 (quoting First Options of Chicago v. Kaplan, 514 U.S. 938, 944, 115 S.Ct. 1920, 131 L.Ed.2d 985 (1995)). An ambiguity as to who should determine arbitrability means that the parties have not clearly and unmistakably manifested an intent to have arbitrators decide the issue as to what specific claims they have agreed to arbitrate. Thus if the agreement is ambiguous, then it is for the court to say what claims should be arbitrated. Lind, 753 So. 2d at 152. We hold that in this instance the trial court erred in finding that the parties had clearly and unmistakably agreed to have the arbitrators determine arbitrability as to time-barred claims.

REVERSED.

GUNTHER and MAY, JJ„ concur.


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Citator

Cited By

  • …NTE, J. We have for review O’Keefe Architects, Inc. v. CED Construction Partners Ltd., 909 So. 2d 370 (Fla. 5th DCA 2005), in which the Fifth District Court of Appeal certified conflict with Reuter Recycling of Florida, Inc. v. City of Dania Beach, 859 So. 2d 1271 (Fla. 4th DCA 2003). The conflict issue is whether under the Florida Arbitration Code,1 a statute of limitations defense is subject to arbitration when the arbitration agreement provides that claims, disputes or other matters arising out of or relat…
  • O'Keefe Architects, Inc. v. CED Constr. P'rs Ltd., 909 So. 2d 370 (Fla. 5th DCA 2005)
    …concept encompasses the position that arbitration is unnecessary because of the expiration of the statute of limitations. See CED Constr. We do, however, certify conflict in this regard with Reuter Recycling of Florida, Inc. v. City of Dania Beach, 859 So. 2d 1271 (Fla. 4th DCA 2003). AFFIRMED. PLEUS, C.J., ORFINGER and MONACO, JJ., concur.…

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