STEINBERG/W.F.I. FOODS, INC., APPELLANT,
v.
D.C.M. AND ASSOCIATES, W.F.I. CORP., A NEW JERSEY CORPORATION, AND PAUL BERKO, AN INDIVIDUAL, APPELLEES
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Steinberg/W.F.I. Foods appealed the trial court's denial of its motion to compel arbitration of a breach of lease claim. The Fourth District reversed, holding that a valid arbitration agreement covering the lease dispute must be enforced even though other counts involving non-signatories would proceed in court, rejecting the argument that 'piecemeal' resolution is impermissible.
The court reversed the trial court's denial of the motion to compel arbitration. A valid arbitration agreement covering the breach of lease claim must be enforced, and the existence of other counts involving non-signatories does not justify avoiding arbitration. The 'piecemeal' resolution of disputes—with the arbitrable portion going to arbitration and non-arbitrable portions proceeding in court—is permissible and does not violate Florida law.
[1] A trial court must order arbitration when a valid agreement to arbitrate and an arbitrable issue are clearly demonstrated.
[2] An arbitration provision in a lease agreement only applies to parties who are signatories to that agreement.
Previewing 2 of 5 headnotes on this case. FLexlaw’s editorially structured points of law — every proposition, pinpointed — are reserved for members.
Join FLexlaw to unlock all legal intelligence“Clear demonstration of a valid agreement to arbitrate and the existence of an arbitrable issue required the trial court to direct the matter to proceed in arbitration.”
Establishes the legal standard for compelling arbitration under Florida law.
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Join FLexlaw to unlock all legal intelligenceSteinberg/W.F.I. Foods and D.C.M. and Associates entered into a lease agreement containing an arbitration provision. A dispute arose and Steinberg fil…
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[*513] GLICKSTEIN, Judge.
This is an appeal from the trial court’s order denying appellant’s motion to compel arbitration. We reverse and remand.
Clear demonstration of a valid agreement to arbitrate and the existence of an arbitrable issue required the trial court to direct the matter to proceed in arbitration. City of Pompano Beach v. Meiroff, 410 So. 2d 663 (Fla. 4th DCA 1982). The only claim that appellant seeks to arbitrate is the breach of lease claim set forth in Count I of the complaint. Since the only parties to the lease agreement are Stein-berg and D.C.M., the remaining counts of the complaint which involve parties not signatories to the lease agreement are not subject to the arbitration provision. Thus, appellant’s argument regarding the impropriety of resolving the piercing of a corporate veil issue by arbitration is unfounded, given the fact that W.F.I. Corp. is not a party to the lease agreement and that said issue would not be the subject of arbitration.
As to appellee’s contention that a “piecemeal” and expensive resolution would result if this court requires a portion of the suit to be determined by arbitration and the balance to be tried in court, the Third District Court of Appeal in Post Tensioned Engineering Corp. v. Fairways Plaza Associates, 412 So. 2d 871, 875 (Fla. 3d DCA), rev. denied, 419 So. 2d 1197 (Fla. 1982), stated that arbitration may not be avoided on the basis that there exist other defendants to the lawsuit with which the plaintiff has no agreement to arbitrate. Thus, the “piecemeal” resolution of that lawsuit in which fraud was alleged, equitable relief was sought and a complex construction industry dispute was involved, was upheld. We adopt the following reasoning expounded by the Third District in Post Tensioned Engineering:
[W]e 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. at 875. To permit such an easy means of avoiding a contractual agreement to arbitrate would fly in the face of the Florida legislature’s intention, as expressed in section 682.01, Florida Statutes, to grant legal recognition to arbitration agreements provided that there is no stipulation between the parties precluding application of the Florida Arbitration Code.
DELL and GUNTHER, JJ., concur.
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Am. Int'l Grp., Inc. v. Cornerstone Buses., Inc., 872 So. 2d 333 (Fla. 2d DCA 2004)…. Gulf and Western Industries, 336 So. 2d [*337] 461 (Fla. 3d DCA 1976). Similarly, a parent corporation which is not a signatory party to an agreement is not bound by its arbitration provision. Steinberg/W.F.I. Foods, Inc. v. D.C.M. and Associates, 522 So. 2d 512 (Fla. 4th DCA 1988). Claims of various entities, even though interrelated, must ordinarily be treated separately. A parent corporation will not be held liable for the actions of its subsidiary unless the subsidiary is deemed to be a mere instrumenta…
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Federated Title Insurers, Inc. v. Ward, 538 So. 2d 890 (Fla. 4th DCA 1989)…n v. Gulf and Western Industries, 336 So. 2d 461 (Fla. 3d DCA 1976). Similarly, a parent corporation which is not a signatory party to an agreement is not bound by its arbitration provision. Steinberg/W.F.I. Industries Inc. v. D.C.M. and Associates, 522 So. 2d 512 (Fla. 4th DCA 1988). Claims of various entities, even though interrelated, must ordinarily be treated separately. A parent corporation will not be held liable for the actions of its subsidiary unless the subsidiary is deemed to be a mere instrumenta…
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NEC Elecs., Inc. v. VG Sales Co., 655 So. 2d 1146 (Fla. 4th DCA 1995)…See 9 U.S.C.A. §§ 2, 3. We recognize that generally, federal policy favors arbitration even when there are additional issues and parties not subject to the arbitration agreement. See, e.g., Steinberg/W.F.I. Foods, Inc. v. D.C.M. and Assocs., W.F.I., 522 So. 2d 512 (Fla. 4th DCA 1988). However, in Volt Information Sciences, Inc. v. Board of Trustees of Leland Stanford Junior University, 489 U.S. 468, 109 S.Ct. 1248, 103 L.Ed.2d 488 (1989), the Supreme Court found that applying the same California Civil Procedu…
Previewing 3 of 5 citing cases — full citator treatment, depth of discussion, and citing context are member features.
Join FLexlaw to unlock all legal intelligenceAuthorities Cited
- Post Tensioned Eng'g Corp. & Commercial Constr. Corp. v. Fairways Plaza Assocs., 412 So. 2d 871 (Fla. 3d DCA 1982)
- City OF Pompano Beach & John H. Schoeberlein v. Harley J. Meiroff & Broward Cnty. Police Benevolent Ass'n, Inc., 410 So. 2d 663 (Fla. 4th DCA 1982)