SILVERMAN WENDER KOONIN EPSTEIN GARCIA & ROSENCWAIG, P.A., ETC., ET AL., APPELLANTS,
v.
JAY J. DENNIS, M.D., APPELLEE
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A medical practice appeals a trial court's denial of its motion to compel arbitration of claims by a former employee-physician. The court affirmed, holding that an expired employment contract's arbitration clause no longer binds the parties where the employee continued working on an at-will basis after the contract's expiration.
The court held that the arbitration clause is no longer in effect because the employment contract containing it expired in 2003, and no contract existed during the subsequent two years of at-will employment to obligate the parties to arbitrate disputes.
[1] An arbitration clause within an employment contract is unenforceable when the contract has expired by its own terms.
[2] Continued employment on an at-will basis after the expiration of a fixed-term employment contract does not revive or extend the enforceability of an arbitration clause co…
Previewing 2 of 3 headnotes on this case. FLexlaw’s editorially structured points of law — every proposition, pinpointed — are reserved for members.
Join FLexlaw to unlock all legal intelligence“the employment contract containing the arbitration clause is no longer in effect. The employment contract in question expired by its terms in 2003.”
The court's holding that the arbitration clause ceased to be enforceable upon expiration of the underlying contract.
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Join FLexlaw to unlock all legal intelligenceDr. Dennis entered a two-year employment contract with Silverman medical practice in 2001 to perform hand surgery, which contained an arbitration clau…
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SUAREZ, J.
The medical practice of Silverman, Wen-der, Koonin, Epstein, Garcia, & Ro-sencwaig, P.A. (“Silverman”) appeals a non-final order denying its motion to compel arbitration and to stay litigation with its former employee, Dr. Jay Dennis (“Dr. Dennis”). We affirm.
Silverman contends that arbitration is mandatory under Dr. Dennis’ employment agreement. Dr. Dennis asserts that the arbitration clause is no longer in effect because the agreement containing the clause has expired.
Dr. Dennis entered into a two-year employment contract to perform hand surgery for the Silverman practice in 2001. The contract contained an arbitration clause requiring the parties to arbitrate any claims or disputes arising out of or related to the contract. The parties agree that the contract expired by its terms in August, 2003. Silverman sent Dr. Dennis a letter confirming the fact that the contract had expired and that Dr. Dennis’ employment was being continued on an at-will basis. Dr. Dennis continued working for Silverman for two years after the agreement expired. When he left Silver-man in 2005, he filed suit in circuit court seeking remuneration for work he allegedly performed. Silverman moved to compel arbitration, arguing that the employment contract and its arbitration clause are still controlling because the parties continued to govern themselves according to the agreement’s terms after it expired. The trial court denied the motion to compel arbitration and Silverman appeals.
We affirm because the employment contract containing the arbitration clause is no longer in effect. The employment contract in question expired by its terms in 2003. After the agreement expired, Dr. Dennis continued working for Silverman as an at-will employee until he left Silverman’s practice in 2005. During those two years, no contract existed between the parties that would obligate them to arbitrate a dispute. Therefore, the trial court correctly rejected Silverman’s motion to compel arbitration. See Sanz v. R.T. Aerospace Corp., 650 So. 2d 1057, 1060 (Fla. 3d DCA 1995) (holding that a noncompete clause was unenforceable where the written agreement containing that clause had expired and the employee continued performing pursuant to an oral agreement).
Affirmed.
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Cited By
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Zupnik v. ALL Fla. Paper, Inc., 997 So. 2d 1234 (Fla. 3d DCA 2008)…This Court held that a preliminary injunction pursuant to the non-compete clause was improper because the written employment agreement had expired “by its very terms.” Id. See also Silverman Wender Koonin Epstein Garcia & Rosencwaig, P.A. v. Dennis, 937 So. 2d 1221, 1222 (Fla. 3d DCA 2006); Gray v. Prime Mgmt. Group, Inc., 912 So. 2d 711 (Fla. 4th DCA 2005); and Storz Broadcasting Co. v. Courtney, 178 So. 2d 40 (Fla. 3d DCA 1965). In the case before us, the restrictive covenants against competition, solicitat…
Authorities Cited
- Sanz v. R.T. Aerospace Corp., 650 So. 2d 1057 (Fla. 3d DCA 1995)