Terminix Intern. Co., LP v. Ponzio

693 So. 2d 104, 1997 WL 231487
CourtDistrict Court of Appeal of Florida
DecidedMay 9, 1997
Docket96-3091
StatusPublished
Cited by48 cases

This text of 693 So. 2d 104 (Terminix Intern. Co., LP v. Ponzio) 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
Terminix Intern. Co., LP v. Ponzio, 693 So. 2d 104, 1997 WL 231487 (Fla. Ct. App. 1997).

Opinion

693 So.2d 104 (1997)

TERMINIX INTERNATIONAL COMPANY, LP, Appellant,
v.
Anthony PONZIO and Randy Ponzio, etc., et al., Appellees.

No. 96-3091.

District Court of Appeal of Florida, Fifth District.

May 9, 1997.

*105 James M. Nicholas and Aaron D. Lyons, of James M. Nicholas, P.A., Indian Harbour Beach, for Appellant.

David A. May, of Nebel & May, P.A., Orlando, for Appellees.

COBB, Judge.

Terminix International Company, LP, defendant below, takes this interlocutory appeal from an order denying its motion to dismiss which had been predicated on a demand for enforcement of an arbitration clause[1].

Anthony Ponzio entered into a residential pest control service agreement (the agreement) with Terminix. Ponzio and his wife Randy subsequently filed a five count complaint against Terminix sounding in negligence and breach of contract.[2] Counts I through IV allege negligence on behalf of each plaintiff and assert that Terminix had a duty to but failed to:

(a) control black widow, brown recluse spiders and other insects in and around the Ponzios' house, and
(b) eradicate black widow, brown recluse spiders and other insects in and around the Ponzios' house

and that as a direct and proximate result of Terminix's negligence, the plaintiffs suffered bodily injury.

Count V alleges that Terminix breached the agreement by failing to control or eradicate all pests listed in the pest control service agreement and that as a direct and proximate result of Terminix's breach, the plaintiffs suffered bodily injury.

Terminix filed a motion to dismiss the complaint pursuant to the arbitration clause in paragraph 7 of the terms and conditions of the agreement:

The Purchaser and Terminix agree that any controversy or claim between them arising out of or relating to this agreement shall be settled exclusively by arbitration.
*106 Such arbitration shall be conducted in accordance with the Commercial Arbitration Rules then in force of the American Arbitration Association. The decision of the arbitrator shall be a final and binding resolution of the disagreement which may be entered as a judgment by any court of competent jurisdiction. Neither party shall sue the other where the basis of the suit is this agreement other than for enforcement of the arbitrator's decision. In no event shall either party be liable to the other for indirect, special or consequential damages or loss of anticipated profits.

The plaintiffs responded by arguing that personal injury claims were not arbitrable, under the terms of this provision, relying on Terminix v. Michaels, 668 So.2d 1013 (Fla. 4th DCA 1996), rev. denied, 679 So.2d 774 (Fla.1996), wherein the Fourth District held that a homeowner's personal injury claim did not arise out of or relate to the interpretation, performance, or breach of the parties' contract within the meaning of the contract's arbitration clause.

The trial court denied Terminix's motion to dismiss.

In considering a request for arbitration, the trial court must determine whether a valid written agreement to arbitrate exists, whether an arbitrable issue exists, and whether the right to arbitration was waived. Fortune Insurance Co. v. USA Diagnostics, Inc., 684 So.2d 208 (Fla. 4th DCA 1996). The basic question presented in this case is purely a legal one, whether, accepting as true the allegations of the plaintiffs' complaint, the plaintiffs have asserted claims which are subject to arbitration.

Terminix asserts that federal law governs the interpretation and enforceability of the arbitration provision at issue and further asserts that Michaels, which did not reference federal authority, was erroneously decided or at the very least is distinguishable.

The Federal Arbitration Act (Act), 9 U.S.C. § 2, et seq., mandates arbitration of a claim brought on a contract containing a written agreement calling for arbitration where the contract evidences a transaction involving interstate commerce. In Allied Bruce Terminix Companies, Inc. v. Dobson, 513 U.S. 265, 115 S.Ct. 834, 130 L.Ed.2d 753 (1995), which involved a breach of contract action brought on a termite protection contract containing an arbitration clause, the Supreme Court, citing a strong federal policy favoring enforceability of arbitration provisions, held that the Act is entitled to a broad construction, one that extends to the limits of Congress' commerce clause power. The Court, in ordering arbitration, explained that where the transaction involves, i.e., affects interstate commerce, it is within the ambit of the Act, even if the parties did not contemplate an interstate commerce connection.

Allied-Bruce did not involve an action seeking recovery for personal injuries. Additionally, unlike in Allied-Bruce, the parties in this case have failed to develop a record or obtain a ruling below relative to applicability of the Federal Arbitration Act.

Looking to state law, in Terminix v. Michaels, the Fourth District, in a 2-1 decision, held that an arbitration provision did not encompass a personal injury claim based upon negligence and strict liability theories. The provision in that case read as follows:

The Purchaser and Terminix agree that any controversy or claim between them arising out of or relating to the interpretation, performance, or breach of any provision of this agreement shall be settled exclusively by arbitration.

The Michaels had their home treated with chemical pesticides and thereafter sued alleging negligence and strict liability in connection with the ultrahazardous activity of applying dangerous chemicals. The Michaels alleged damages including loss of the house through foreclosure proceedings and tangible and intangible personal injuries as a result of pesticide poisoning. The trial court refused to order arbitration ruling that arbitration "would dispense with the Michaels' right to trial by jury where it was not clear that personal injuries were subject to arbitration." 668 So.2d at 1014.

The majority agreed, explaining that under Florida law, a court should order arbitration "when satisfied that there is no doubt that an agreement to arbitrate the subject dispute *107 was made." 668 So.2d at 1015 (emphasis in original). The court explained:

Here the court harbored considerable doubt as to whether the personal injury claim came within the arbitration clause. Ambiguous provisions of a contract for arbitration will be construed against arbitrating a dispute. Wood-Hopkins Contracting Co. v. C.H. Barco Contracting Co., 301 So.2d 479, 480 (Fla. 1st DCA 1974). The personal injury claim did not relate to interpretation, performance or breach of any provision of the agreement. Those matters relating to the performance of the contract would be reasonably construed as matters concerning the application of the pesticide to the home and the resulting condition of the property to which it was applied, namely the object of the contract being the eradication of termites in the home. The protection of persons was not within the subject matter of the contract. Therefore, the trial court did not err in denying the motion to compel arbitration.

Id. at 1015.

The majority relied on Dusold v.

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Cite This Page — Counsel Stack

Bluebook (online)
693 So. 2d 104, 1997 WL 231487, Counsel Stack Legal Research, https://law.counselstack.com/opinion/terminix-intern-co-lp-v-ponzio-fladistctapp-1997.