MERRILL LYNCH PIERCE FENNER & SMITH, INC., AND BRIAN SHEEN, PETITIONERS,
v.
HELEN MELAMED, RESPONDENT
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The trial court erred by failing to conduct an evidentiary hearing when a dispute existed regarding the making of the arbitration agreement.
[1] A dispute concerning the making of an agreement to arbitrate requires an evidentiary hearing.
[2] Florida Statutes section 682.03(1) mandates a summary hearing to determine disputed issues regarding the making of an arbitration agreement.
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Join FLexlaw to unlock all legal intelligenceAfter a prior appeal, the trial court was instructed to reconsider a motion to compel arbitration. A dispute arose concerning the authenticity of the …
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HURLEY, Judge.
When this case was last before us,1 we held that the substantive portions of the Federal Arbitration Act2 supersede state law and must be enforced by state courts when the prerequisites of the federal act are satisfied.3 As a result, we reversed an order denying a motion to compel arbitration and remanded the cause with instructions to reconsider the motion in light of the applicable federal law.
Pursuant to our mandate, the trial court conducted a non-evidentiary hearing at which it became evident that there was a dispute between the parties concerning the making of the agreement to arbitrate. But, rather than schedule an evidentiary hearing, the trial court entered a second order denying the motion to compel arbitration.
We reverse because the trial court failed to comply with the procedural requirements of section 682.-03(1), Florida Statutes (1981).4
Speedy resolution of disputes is the raison d’etre of arbitration. Once parties agree to arbitrate, it is essential that they have an easy and quick means to enforce their agreement to arbitrate.5 Section 682.03(1), Florida Statutes (1981) and 9 U.S.C. § 4 (1970) mirror these concerns and offer a realistic solution in the form of a carefully crafted “abbreviated and summary procedure.” Fremont Cake & Meal Co. v. Wilson & Co., 9 F.R.D. 243, 244 (D.Neb. 1949).
For example, section 682.03(1) calls for minimal pleadings. It permits the filing of an application or motion to compel arbitration, but does not require the filing of an answer or response. Also, the section requires a hearing to determine whether there are disputed issues regarding the making of the agreement to arbitrate or the failure to comply therewith. If the court discerns that there are no disputed issues, it is required to enter an order compelling arbitration pursuant to the terms of the parties’ agreement. On the other hand, if the court finds disputed issues regarding the making of the agreement or the failure, neglect, or refusal to perform the same, the court is mandated to “summarily hear and determine the issue .... ” In our view, the latter requirement contemplates an expedited evidentiary hearing.
In the case at bar, counsel for Ms. Melamed refused to stipulate to the authenticity of the agreement to arbitrate. This was sufficient to indicate that a dispute existed about the making of the agreement which, in turn, required the trial court to afford the parties a full evidentiary hearing on the disputed issue. In defense of the able trial judge, it should be noted that neither party brought the statute’s mandatory language to the court’s attention. Merrill Lynch incorrectly took the position that our mandate left nothing to be done other than to enter an order compelling arbitration. Ms. Melamed, as indicated above, took the opposite tack and argued that Merrill Lynch had failed to carry its burden of establishing the authenticity of the agreement. Under these circumstances, we believe that the interests of justice and the statute’s mandatory language compel us to grant the writ of certiorari and quash the trial court’s order.
Furthermore, to promote the purpose of the statute, i.e., a prompt resolution for the parties’ dispute and, at the same time, to permit meaningful appellate review, we request that future orders in this case include express findings of fact and conclusions of law.
Petition Granted; Order Quashed.
DOWNEY and GLICKSTEIN, JJ., concur. . Merrill Lynch Pierce Fenner & Smith, Inc. v. Melamed, 405 So. 2d 790 (Fla. 4th DCA 1981).
. 9 U.S.C. §§ 1 to 14 (1970).
. See also Ultracashmere House, Ltd. v. Meyer, 664 F. 2d 1176 (11th Cir.1981).
. Because state and federal arbitration procedures are virtually identical, compare § 682.-03(1), Fla.Stat. (1981) with 9 U.S.C. § 4 (1970), we need not decide whether the procedural aspects of the federal act are so entwined with its substantive provisions as to require state implementation of both.
.Former Chief Judge Kaufman once observed that “[s]peed is one of the great advantages of commercial arbitration.” Necchi Sewing Machine Sales Corp. v. Necchi, S.p.A., 369 F. 2d 579, 582 (2d Cir.1966). In fact, the benefits of speedy resolution were among the chief motivating factors behind arbitration legislation. “Arbitration laws are passed to expedite and facilitate the settlement of disputes and avoid the delay caused by litigation. It was never intended that these laws should be used as a means of furthering and extending delays.” Radiator Specialty Co. v. Cannon Mills, Inc., 97 F. 2d 318, 319 (4th Cir.1938).
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Hill v. RAY Carter Auto Sales, Inc., 745 So. 2d 1136 (Fla. 1st DCA 1999)…nsideration of the motion seeking to compel arbitration. Jal-is Constr., Inc. v. Mintz, 724 So. 2d 1254 (Fla. 4th DCA 1999). If necessary, the trial court must hold an evidentiary hearing on the issue. Merrill Lynch Pierce Fenner & Smith v. Melamed, 425 So. 2d 127 (Fla. 4th DCA 1982). Because the trial court did not resolve that issue here, we reverse the order staying the proceeding and referring the matter to arbitration, and remand. On remand, the trial court shall conduct such further hearings as it [*113…
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Merrill Lynch v. Melamed, 453 So. 2d 858 (Fla. 4th DCA 1984)…ecision will forestall the production of “Melamed IV.” . 9 U.S.C. §§ 1 to 14 (1976). . Merrill Lynch Pierce Fenner & Smith, Inc. v. Melamed, 405 So. 2d 790 (Fla. 4th DCA 1981) (“Melamed I”). . Merrill Lynch Pierce Fenner & Smith, Inc. v. Melamed, 425 So. 2d 127 (Fla. 4th DCA 1982) ("Melamed II”). . The trial court made the following findings of fact and conclusions of law: (1) the claim against Brian Sheen is not arbitrable because he was not a party to the contract between Merrill Lynch and Melamed; (2)…
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Tandem Health Care OF ST. Petersburg, Inc. v. Whitney, 897 So. 2d 531 (Fla. 2d DCA 2005)…cation. For parties who have agreed to arbitrate, the statute offers an easy and quick means to enforce their agreement “in the form of a carefully crafted ‘abbreviated and summary procedure.’ ” Merrill Lynch Pierce Fenner & Smith, Inc. v. Melamed, 425 So. 2d 127, 128 (Fla. 4th DCA 1982) (quoting Fremont Cake & Meal Co. v. Wilson & Co., 9 F.R.D. 243, 244 (D.Neb.1949)). If there are disputed issues concerning the making of the agreement, the statutory requirement that the court “shall summarily hear and deter…
Previewing 3 of 30 citing cases — full citator treatment, depth of discussion, and citing context are member features.
Join FLexlaw to unlock all legal intelligenceAuthorities Cited
- Ultracashmere House, Ltd. v. Meyer, 664 F.2d 1176 (11th Cir. 1981)
- Radiator Specialty Co. v. Cannon Mills, Inc., 97 F.2d 318 (4th Cir. 1938)
- Ivey v. State, 405 So. 2d 790 (Fla. 4th DCA 1981)
- State v. Augusto Salazar, 405 So. 2d 790 (Fla. 4th DCA 1981)
- Necchi Sewing Mach. Sales Corp. v. Necchi, 369 F.2d 579 (2d Cir. 1966)