Concierge Auctions, LLC v. Coldwell Banker Residential Real Estate, LLC

CourtDistrict Court of Appeal of Florida
DecidedJuly 10, 2024
Docket2023-0650
StatusPublished

This text of Concierge Auctions, LLC v. Coldwell Banker Residential Real Estate, LLC (Concierge Auctions, LLC v. Coldwell Banker Residential Real Estate, LLC) 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
Concierge Auctions, LLC v. Coldwell Banker Residential Real Estate, LLC, (Fla. Ct. App. 2024).

Opinion

Third District Court of Appeal State of Florida

Opinion filed July 10, 2024. Not final until disposition of timely filed motion for rehearing.

________________

No. 3D23-0650 Lower Tribunal No. 19-14915 ________________

Concierge Auctions, LLC, et al., Appellants,

vs.

Coldwell Banker Residential Real Estate, LLC, et al., Appellees.

An Appeal from a non-final order from the Circuit Court for Miami-Dade County, Valerie R. Manno Schurr, Judge.

Gonya Law, and Patrick E. Gonya, Jr.; GrayRobinson, P.A., and Jack R. Reiter, for appellants.

Kula & Associates, P.A., and Elliot B. Kula and W. Aaron Daniel, for appellee ICB Properties of Miami, LLC.

Before EMAS, LINDSEY and MILLER, JJ.

EMAS, J. INTRODUCTION

Appellant Concierge Auctions, LLC appeals two separate nonfinal

orders denying its motion to compel arbitration. Appellants Chad Roffers,

Paulina Kimbel and John McMonigle appeal a single nonfinal order denying

their motions to compel arbitration. For the reasons that follow, we dismiss

the appeal as it pertains to appellant Concierge Auctions, LLC, as untimely

filed, and reverse the order as it pertains to appellants Roffers, Kimbel and

McMonigle, and remand for further proceedings.

FACTUAL AND PROCEDURAL HISTORY

ICB Properties of Miami, LLC (ICB) owned property in Coral Gables,

Florida. In 2018, it entered into a listing agreement with Submarket Realty,

LLC d/b/a Engle & Volkers (Engle & Volkers). Engle and Volkers

encouraged ICB to work with Concierge Auctions, LLC (Concierge), a real

estate auction marketing firm in the business of auctioning high-end

residential real estate. Roffers, Kimbel, and McMonigle (collectively referred

to as “the Individual Third-Party Defendants”) are all members of Concierge.

The Auction Agreement and Arbitration Provision

In January 2019, ICB entered into an Auction Agreement with

Concierge to market the property for sale through a “no reserve” auction.

Under the terms of the Auction Agreement, Concierge was entitled to a

2 “buyer’s premium” to be paid by the winning bidder after the auction,

pursuant to a separate agreement between the bidder and Concierge. The

Auction Agreement contained an arbitration provision:

Arbitration; Venue; Prevailing Party. The parties shall submit any and all controversies, disputes, claims and matters of difference arising out of or relating to this Agreement, including but not limited to its performance, enforcement, scope and/or interpretation, exclusively to arbitration in Austin, Texas in accordance with the Commercial Arbitration Rules and Mediation Procedures of the American Arbitration Association then in effect (the “Rules”). Notwithstanding anything to the contrary contained in this Agreement, each of the Parties agrees that this Agreement evidences a transaction involving interstate commerce and that the Federal Arbitration Act applies to and governs this arbitration provision and shall preempt any inconsistent state or federal rule or law. . . .

Prior to the auction, ICB and Concierge entered into a First Addendum

to the Auction Agreement which provided that Concierge would not be

entitled to the buyer’s premium if the property sold for less than $29 million.

The Sale, Dispute and Florida Lawsuit

Several bidders registered for the auction, and at its conclusion, the

winning bidder, who was represented by Coldwell Banker Residential Real

Estate LLC d/b/a the Jills Zeder Group (Coldwell Banker), bid $25.5 million.

The sale of the property closed on April 22, 2019. Following the closing, a

dispute arose between Coldwell Banker and ICB, the seller, relating to the

3 2.5% commission Coldwell Banker claimed it was entitled to under the listing

agreement between ICB and Engle & Volkers.

Coldwell Banker filed suit against ICB for its alleged refusal to pay the

commission under the listing agreement and its addendum. ICB

counterclaimed and filed a third-party complaint against Concierge and

Engle & Volkers, claiming, inter alia, Concierge was responsible for the

payment of any commissions, that Engle & Volkers waived commission

because the property sold for less than $29 million, that Concierge breached

the Auction Agreement and that Engle & Volkers breached the listing

agreement. Engle & Volkers counterclaimed against ICB, seeking payment

of its commissions pursuant to its listing agreement.

Concierge Initiates Separate Arbitration in Texas and Moves to Compel Arbitration of Florida Lawsuit

Thereafter, on September 17, 2019, Concierge initiated an arbitration

in Texas against ICB, asserting, inter alia, that ICB had breached the Auction

Agreement by filing a third-party action against Concierge in Florida state

court. Concierge sought to compel arbitration and to stay the Florida lawsuit,

asserting that ICB was required to arbitrate all of its claims based on the fact

that the auction and related activities involved interstate commerce. Counsel

agreed to set a hearing on the motion to compel arbitration for April 2, 2020.

Meanwhile, in the Texas Arbitration initiated by Concierge, ICB objected to

4 the arbitrator’s jurisdiction, and sought a stay of the arbitration until the

Florida trial court could decide Concierge’s motion to compel arbitration of

ICB’s claims. The arbitrator denied ICB’s motion.

ICB Amends Third-Party Claims to Add Individual Third-Party Defendants Roffers, Kimbel and McMonigle

The April 2, 2020, hearing on Concierge’s motion to compel arbitration

was rescheduled due to the COVID-19 pandemic. The motion was

eventually reset for a hearing to be held February 26, 2021.

In December 2020, ICB amended its counterclaim and third-party claim

to add the Individual Third-Party Defendants, Roffers, Kimbel and

McMonigle. Two months later, the Individual Third-Party Defendants filed

their own motions to compel arbitration, claiming they had standing to raise

the arbitration provision of the Auction Agreement based on principles of

agency and equitable estoppel. Following ICB’s amended counterclaim and

third-party claim, Concierge filed an amended motion to compel arbitration,

continuing to allege that all claims must be arbitrated in Texas pursuant to

the arbitration provision of the Auction Agreement. ICB responded that the

claims are not arbitrable under the Federal Arbitration Act (FAA) because:

the sale of real property is inherently intrastate, and does not involve

interstate commerce; Concierge violated the terms of the arbitration

provision by failing to file a separate action in Texas court to compel

5 arbitration; Concierge waived the right to compel arbitration because the

pleadings in the Texas arbitration were closed and a final hearing had

already been set; and, that if arbitration was compelled, Coldwell Banker and

Engle & Volkers must be required to participate because all the pending

claims were inextricably intertwined.

The hearing on Concierge’s motion to compel arbitration was not held

on February 26, 2021. Instead, the trial court rescheduled it for May 2021. In

the meantime, the Texas arbitrator granted summary judgment (as to

liability) on Concierge’s claim that ICB breached the arbitration provision by

filing its claims against Concierge in a Florida court instead of arbitrating the

claims in Texas.

Because of the trial court’s unavailability, the May 2021 hearing was

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