Complete Interiors, Inc. v. Behan

558 So. 2d 48, 1990 Fla. App. LEXIS 119, 1990 WL 1219
CourtDistrict Court of Appeal of Florida
DecidedJanuary 4, 1990
Docket88-922
StatusPublished
Cited by28 cases

This text of 558 So. 2d 48 (Complete Interiors, Inc. v. Behan) is published on Counsel Stack Legal Research, covering District Court of Appeal of Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Complete Interiors, Inc. v. Behan, 558 So. 2d 48, 1990 Fla. App. LEXIS 119, 1990 WL 1219 (Fla. Ct. App. 1990).

Opinion

558 So.2d 48 (1990)

COMPLETE INTERIORS, INC., Appellant,
v.
Thomas BEHAN, et al., Appellees.

No. 88-922.

District Court of Appeal of Florida, Fifth District.

January 4, 1990.
Rehearing Denied March 16, 1990.

*49 Ladd H. Fassett and Robert W. Anthony, of Smathers, Pleus, Adams, Fassett & Divine, P.A., Orlando, for appellant.

William M. Rishoi and Philip J. Snyderburn, Winter Park, for appellees.

ON MOTION FOR REHEARING AND CLARIFICATION

DANIEL, Chief Judge.

We grant the motion for rehearing and clarification, withdraw the prior opinion and substitute the following in its place.[1]

Complete Interiors, Inc., appeals a final judgment which confirmed an arbitration award in favor of appellees Thomas Behan, Carol Behan and Kevin Behan and which awarded appellees attorney's fees. Complete argues that the trial court erred in confirming the arbitrator's award of punitive damages and in awarding attorney's fees. We agree and accordingly reverse those portions of the final judgment. In all other respects, the final judgment is affirmed.[2]

*50 In 1983, Complete, a construction company, entered into an agreement with Thomas and Carol Behan for the construction of their home. Disputes later arose as to defects in the house and Complete's warranty obligations. Complete filed suit against the Behans seeking a judgment declaring what items Complete was obligated to repair under the terms of its warranty. In a separate action, the Behans, along with several other homeowners, including Kevin Behan, Thomas' brother, filed suit against Complete seeking damages for breach of contract, breach of warranty and negligent workmanship in the construction of their homes. The claims of the appellees were consolidated and tried together.

Complete later moved the trial court for an order requiring arbitration of the parties' disputes based on an arbitration provision in the agreements. The motion was granted and the action was abated pending arbitration.

The arbitrator awarded Thomas and Carol Behan compensatory damages of $28,718.83 and prejudgment interest of $14,379.87 for a total award of $43,098.70. The arbitrator awarded Kevin Behan compensatory damages in the amount of $9,047.83 and prejudgment interest of $4,393.52 for a total award of $13,441.35. The arbitrator also ordered Complete to pay the appellees punitive damages in the amount of one and one-half times their respective compensatory damage awards. The trial court entered its final judgment and order confirming the compensatory and punitive damage awards. The court also ordered Complete to pay the attorney's fees of the appellees.

On appeal, Complete argues that the trial court erred in confirming the arbitration award of punitive damages. Initially we note that the scope of review of arbitration awards is extremely limited so as to avoid a "judicialization" of the arbitration process. See E.I. Du Pont de Nemours and Co. v. Grasselli Employees Association, 790 F.2d 611 (7th Cir.1986), cert. denied, 479 U.S. 853, 107 S.Ct. 186, 93 L.Ed.2d 120 (1986). Arbitration is an alternative to the court system and limited review is necessary to prevent arbitration from becoming merely an added preliminary step to judicial resolution rather than a true alternative. Id. at 614. See also District School Board of St. Johns County v. Timoney, 524 So.2d 1129 (Fla. 5th DCA 1988).

Section 682.13(1), Florida Statutes (1987) sets forth the grounds for vacating an award in arbitration:

Vacating an award. —
(1) Upon application of a party, the court shall vacate an award when:
(a) The award was procured by corruption, fraud or other undue means.
(b) There was evident partiality by an arbitrator appointed as a neutral or corruption in any of the arbitrators or umpire or misconduct prejudicing the rights of any party.
(c) The arbitrators or the umpire in the course of his jurisdiction exceeded their powers.
(d) The arbitrators or the umpire in the course of his jurisdiction refused to postpone the hearing upon sufficient cause being shown therefor or refused to hear evidence material to the controversy or otherwise so conducted the hearing, contrary to the provision of s. 682.06, as to prejudice substantially the rights of a party.
(e) There was no agreement or provision for arbitration subject to this law, unless the matter was determined in proceedings under s. 682.03 and unless the party participated in the arbitration hearing without raising the objection.
But the fact that the relief was such that it could not or would not be granted by a court of law or equity is not ground for vacating or refusing to confirm the award. (emphasis added).

In Schnurmacher Holding, Inc. v. Noriega, 542 So.2d 1327 (Fla. 1989), the Florida Supreme Court held that an arbitrator exceeds his power when he or she goes beyond the authority granted by the parties or the operative documents and decides an issue not pertinent to the resolution of *51 the issues submitted to arbitration. We conclude that the parties' agreement here did not provide for an award of punitive damages and accordingly the arbitrator exceeded his power.

The agreements between Complete and the Behans[3] contain the following provision regarding arbitration:

Any dispute or difference arising under this contract shall be arbitrated by the rules and regulations of the American Arbitration Association who shall appoint the arbitrators. The decision of the arbitrators shall be binding and conclusive upon both of the parties hereto and each party is to pay equally for the arbitrator's expense.

We recognize that some courts have held that similar arbitration clauses evince an intent on the part of the parties to vest the arbitrators with authority to decide virtually any claim that could arise in relation to the contract and its performance and is broad enough to empower the arbitrators to award punitive damages. See, e.g., Bonar v. Dean Witter Reynolds, Inc., 835 F.2d 1378 (11th Cir.1988); Ehrich v. A.G. Edwards & Sons, Inc., 675 F. Supp. 559 (D.S.D. 1987); Willoughby Roofing & Supply v. Kajima International, Inc., 598 F. Supp. 353 (N.D.Ala. 1984), aff'd, 776 F.2d 269 (11th Cir.1985).

However, we conclude that the better view is that punitive damages may not be awarded by an arbitrator absent an express provision authorizing such relief in the arbitration agreement or pursuant to a stipulated submission. See Baltimore Regional Joint Bd. v. Webster Clothes, Inc., 596 F.2d 95 (4th Cir.1979); Kennewick Educ. Ass'n. v. Kennewick Sch. District, 35 Wash. App. 280, 666 P.2d 928 (1983); International Union of Operating Engineers v. Mid-Valley, Inc.,

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Bluebook (online)
558 So. 2d 48, 1990 Fla. App. LEXIS 119, 1990 WL 1219, Counsel Stack Legal Research, https://law.counselstack.com/opinion/complete-interiors-inc-v-behan-fladistctapp-1990.