The Hillier Group, Inc. v. Torcon, Inc.

932 So. 2d 449, 2006 Fla. App. LEXIS 8546, 2006 WL 1479600
CourtDistrict Court of Appeal of Florida
DecidedMay 31, 2006
Docket2D05-4615
StatusPublished
Cited by13 cases

This text of 932 So. 2d 449 (The Hillier Group, Inc. v. Torcon, Inc.) 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
The Hillier Group, Inc. v. Torcon, Inc., 932 So. 2d 449, 2006 Fla. App. LEXIS 8546, 2006 WL 1479600 (Fla. Ct. App. 2006).

Opinion

932 So.2d 449 (2006)

THE HILLIER GROUP, INC., d/b/a The Hillier Group Architecture, New Jersey, Inc., Appellant,
v.
TORCON, INC., Appellee.

No. 2D05-4615.

District Court of Appeal of Florida, Second District.

May 31, 2006.
Rehearing Denied July 11, 2006.

*451 Curtis L. Brown and Mark T. Snelson of Wright, Fulford, Moorhead & Brown, P.A., Orlando, for Appellant.

Adam P. Handfinger and Rebecca E. Johnson of Peckar & Abramson, Fort Lauderdale, for Appellee.

WALLACE, Judge.

The Hillier Group, Inc., d/b/a The Hillier Group Architecture, New Jersey, Inc. (Hillier), appeals a nonfinal order denying its motion to compel arbitration of a construction dispute that is the subject of an action filed by Torcon, Inc. (Torcon).[1] Because the parties' agreement specifically provided for arbitration of the dispute and Hillier did not waive its right to arbitration, we reverse the circuit court's order.

I. FACTS AND PROCEDURAL HISTORY

Beneficial Management Corporation of America (the Owner) engaged Torcon as the design/builder of an office building and parking garage located in Tampa. Torcon retained Hillier to provide architectural *452 and engineering services on the project. Torcon and Hillier used a standard form published by The American Institute of Architects to memorialize their agreement (the Contract).[2]

After the project was completed, the Owner sued Torcon for alleged design and construction defects in the project. In turn, Torcon filed a separate action against Hillier and several other subcontractors for indemnity and breach of contract.[3] Hillier responded by moving to dismiss the complaint because, among other reasons, Torcon had not submitted its claim to arbitration as required by the Contract.

After a hearing, the circuit court entered a written order denying Hillier's motion. The circuit court's order contained the following brief explanation for the denial of Hillier's arbitration demand: "Torcon is not required to submit its claims against Hillier to Arbitration." The basis of the circuit court's ruling is not clear from the written order. However, the trial judge stated at the motion hearing that Hillier had waived its arbitration right by failing to make a timely demand for arbitration of the parties' ongoing dispute.

II. PRELIMINARY MATTERS

Our standard of review of an order denying a motion to compel arbitration is de novo. See Orkin Exterminating Co. v. Petsch, 872 So.2d 259 (Fla. 2d DCA 2004). "In determining whether a dispute is subject to arbitration, courts consider at least three issues: (1) whether a valid written agreement to arbitrate exists; (2) whether an arbitrable issue exists; and (3) whether the right to arbitration was waived." Stacy David, Inc. v. Consuegra, 845 So.2d 303, 306 (Fla. 2d DCA 2003) (citing Seifert v. U.S. Home Corp., 750 So.2d 633, 636 (Fla.1999)).

III. TORCON'S ARGUMENTS

In this appeal, Torcon restates the four arguments it made in the circuit court in opposition to Hillier's request for arbitration. First, the Contract merely calls for presuit, nonbinding mediation or arbitration rather than binding arbitration. Second, Torcon's claims against Hillier are so inextricably intertwined with the claims of the Owner against Torcon and Torcon's claims against the other subcontractors that judicial economy requires resolving all claims in a single action. Third, Hillier waived its right to arbitration by failing to timely serve a demand for arbitration in accordance with the requirements of the Contract. Finally, Hillier also waived its right to arbitration by filing an answer to a separate action for declaratory relief filed by Torcon against Hillier without asserting its right to arbitration. We will consider each of these arguments separately.

IV. DISCUSSION

A. Nonbinding Arbitration or Binding Arbitration?

Torcon's first argument is based on a minute dissection of the language of the arbitration provision in the Contract. Article 6 of the Contract addresses the subject of "Dispute Resolution — Mediation and Arbitration" in detail. Paragraph 6.1 of Article 6 provides:

Claims, disputes or other matters in question between the parties to this Part 2 Agreement arising out of or relating to this Part 2 Agreement or breach thereof *453 shall be subject to and decided by mediation or arbitration. Such mediation or arbitration shall be conducted in accordance with the Construction Industry Mediation or Arbitration Rules of the American Arbitration Association currently in effect.

Torcon argues that because the words "only," "solely," "binding," or "final" are not found in the arbitration provision, at best it only suggests nonbinding arbitration as one method of dispute resolution.

Torcon's first argument is unpersuasive for two reasons. First, the language of paragraph 6.1 providing that the parties' disputes "shall be subject to and decided by mediation or arbitration" is sufficient to create an enforceable agreement for binding arbitration. The Third District has held an arbitration clause with similar operative language to be valid and enforceable. See Post Tensioned Eng'g Corp. v. Fairways Plaza Assocs., 412 So.2d 871, 872-73 (Fla. 3d DCA 1982). We decline to adopt a rule that would require an arbitration clause to contain one or more "magic words" to be enforceable. Second, Torcon's strained interpretation of paragraph 6.1 is incompatible with Florida's strong policy favoring the enforcement of agreements to arbitrate. See Orkin Exterminating, 872 So.2d at 263. The application of this policy is especially appropriate in cases such as this one involving a complicated construction industry dispute. See K.P. Meiring Constr., Inc. v. Northbay I & E, Inc., 761 So.2d 1221, 1223 (Fla. 2d DCA 2000). "When there is an enforceable arbitration agreement, the courts should require the terms to be followed." Healthcomp Evaluation Servs. Corp. v. O'Donnell, 817 So.2d 1095, 1097 (Fla. 2d DCA 2002).

B. Considerations of Judicial Economy

Torcon relies on cases from other jurisdictions for its argument that considerations of judicial economy support the trial court's decision to deny Hillier's motion to compel arbitration. We find the Florida authorities more persuasive, and we disagree with Torcon's second argument. In Post Tensioned Engineering, an owner filed suit against a contractor. 412 So.2d at 872. The contractor moved to compel arbitration in accordance with a contract. Id. The trial court denied the motion, and the contractor petitioned for a writ of certiorari. Id. On appeal, the owner urged the Third District to deny the contractor's petition because the owner had not sued only the contractor with whom it had an agreement to arbitrate, "but has sued and intends to sue others with which it has no such agreement, and with which, therefore, the dispute must be litigated in court." Id. at 875. Our sister court emphatically disagreed. Id. "In light of the strong public policy favoring arbitration," the Third District reasoned, "we cannot accept the proposition that a party to a contract calling for arbitration may avoid that undertaking by the simple device of joining as defendants in its lawsuit others with which the party has no such agreement to arbitrate." Id. (citations omitted).

Free access — add to your briefcase to read the full text and ask questions with AI

Related

2D16-642 / Dea v. PH Fort Myers
208 So. 3d 1204 (District Court of Appeal of Florida, 2017)
13 Parcels LLC v. Laquer
104 So. 3d 377 (District Court of Appeal of Florida, 2012)
SA-PG SUN CITY CENTER, LLC v. Kennedy
79 So. 3d 916 (District Court of Appeal of Florida, 2012)
Schwarz v. Gierke
2010 ND 166 (North Dakota Supreme Court, 2010)
Green Tree Servicing, LLC v. McLeod
15 So. 3d 682 (District Court of Appeal of Florida, 2009)
Strominger v. AmSouth Bank
991 So. 2d 1030 (District Court of Appeal of Florida, 2008)
Texas Auto Mart v. Thrifty Rent-A-Car
979 So. 2d 360 (District Court of Appeal of Florida, 2008)
Hubbard Const. Co. v. Jacobs Civil, Inc.
969 So. 2d 1069 (District Court of Appeal of Florida, 2007)
ABEL HOMES AT NARANJA VILLAS v. Hernandez
960 So. 2d 891 (District Court of Appeal of Florida, 2007)
State Ex Rel. Stenehjem v. Philip Morris, Inc.
2007 ND 90 (North Dakota Supreme Court, 2007)

Cite This Page — Counsel Stack

Bluebook (online)
932 So. 2d 449, 2006 Fla. App. LEXIS 8546, 2006 WL 1479600, Counsel Stack Legal Research, https://law.counselstack.com/opinion/the-hillier-group-inc-v-torcon-inc-fladistctapp-2006.