HARDIN INTERNATIONAL, INC., N/K/A HARDIN CONSTRUCTION GROUP, INC., A GEORGIA CORPORATION, APPELLANT,
v.
FIREPAK, INC., ETC., APPELLEE
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Both parties waived their contractual right to arbitrate by electing to litigate and waiting three years to raise the issue of arbitration.
[1] A party waives its contractual right to arbitrate by electing to resolve disputes through litigation and by delaying the assertion of arbitration rights for an extended p…
[2] Filing a lawsuit without first submitting the dispute to arbitration constitutes a waiver of the right to arbitrate that claim.
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Join FLexlaw to unlock all legal intelligenceFirepak sued Hardin to foreclose a mechanic's lien. Hardin counterclaimed for breach of contract, alleging the contract allowed set-off for other disp…
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JORGENSON, Judge.
Hardin International, Inc. appeals two nonfinal orders. One order denies a motion to compel arbitration of Firepak, Inc.’s complaint; the second order compels arbitration of Hardin’s counterclaim against Firepak. For the following reasons, we reverse the order compelling arbitration of the counterclaim and affirm the order denying arbitration of the lien foreclosure action.
In April, 1987, Firepak sued Hardin and Hardin’s surety to foreclose on a $20,000 mechanic’s lien. The lien arose from fire protection services that Firepak had performed on a construction project in Miami, Florida. In August, 1987, Hardin answered Firepak’s complaint, asserted the affirmative defense of set-off, and counterclaimed for damages, alleging that Firepak had breached its contract with Hardin on a construction project in Dania, Florida. Hardin’s pleading averred that the contract between Hardin and Firepak for the Miami project expressly “authorizes Hardin to set off its claims arising from other matters such as the Dania Subcontract.” Firepak moved to dismiss the counterclaim on grounds not related to the right to arbitrate. Almost three years after the suits had been filed, in May, 1990, Firepak moved to compel arbitration of Hardin’s counterclaim. Hardin then moved to compel arbitration of Firepak’s lien foreclosure action.
The trial court entered an order compelling arbitration of the counterclaim but denied Hardin’s motion to compel arbitration of the lien foreclosure.
Both parties waived their contractual right to arbitrate when they chose to resolve the disputes at the outset through litigation and then waited three years from the date the foreclosure action and the counterclaim were filed to even raise the issue of arbitration. See Rosen v. Shearson Lehman Bros., Inc., 534 So. 2d 1185 (Fla. 3d DCA 1988) (right to arbitrate is waived when party to agreement providing right to arbitration elects to litigate), rev. denied, 544 So. 2d 200 (Fla.1989); Coral 97 Assoc., Ltd. v. Chino Elec., Inc., 501 So. 2d 69 (Fla. 3d DCA 1987); Lapidus v. Arlen Beach Condominium Ass’n, 394 So. 2d 1102 (Fla. 3d DCA 1981) (same).
Firepak waived its right to arbitrate the lien dispute when it filed the foreclosure action; Hardin waived its right to arbitrate that action when it answered Firepak’s complaint without seeking to compel arbitration. Hardin waived its right to arbitrate the breach of contract on the Dania project when it filed its counterclaim; Firepak waived its right to arbitrate that counterclaim when it moved for dismissal of the counterclaim on grounds other than failure to comply with a condition precedent to litigation, namely arbitration of the claim.1 Cf. King v. Thompson & McKinnon, Auchincloss Kohlmeyer, Inc., 352 So. 2d 1235 (Fla. 4th DCA 1977) (filing answer without asserting right for arbitration acts as waiver); compare Graham Contracting, Inc. v. Flagler County, 444 So. 2d 971, 973 (Fla. 5th DCA 1983) (“The failure of a complaint to allege occurrence of a condition precedent of arbitration could be argued as the reason a complaint fails to state a cause of action.”), rev. denied, 451 So. 2d 848 (Fla.1984).
Both parties acted in disregard of their right to arbitration. See Ojus Industries, Inc. v. Mann, 221 So. 2d 780 (Fla. 3d DCA 1969).
Firepak argues that the issue of whether it made a timely demand for arbitration is a matter for the arbitrator to decide, citing Rinker Portland Cement Corp. v. Seidel, 414 So. 2d 629 (Fla. 3d DCA 1982). In Rinker, we held that the timeliness of a demand for arbitration is itself a matter for the arbitrator to decide when the issue is the passage of time between when the dispute arose and when the demand for arbitration was made. This case, however, involves the passage of time between the initiation of litigation and the demand for arbitration. By acquiescing to the judicial forum for nearly three years after the actions were filed, both sides “manifested an acceptance of the judicial forum and waived any right ... to arbitration.” Lapidus, 394 So. 2d at 1103.
Thus we conclude that neither claim shall be arbitrated; both shall proceed in litigation.
Affirmed in part, reversed in part, and remanded for further proceedings.
. The subcontract that forms the basis for the counterclaim provides in Article VII that "[n]o action may be initiated in any court of law or equity related to any claim or dispute or other matters subject to this article unless the same has first been submitted to arbitration under the provisions hereof."
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Beverly Hills Dev. Corp. v. George Wimpey OF Fla., Inc., 661 So. 2d 969 (Fla. 5th DCA 1995)…the trial court for further proceedings. REVERSED and REMANDED. PETERSON, C.J., and COBB, J., concur. . We assume, arguendo, but do not decide, that this provision applied to this dispute. . See also, Hardin International Inc. v. Firepak, Inc., 567 So. 2d 1019 (Fla. 3d DCA 1990); Riverfront Properties, Ltd. v. Max Factor III, 460 So. 2d 948 (Fla. 2d DCA 1984); Graham Contracting, Inc. v. Flagler County, 444 So. 2d 971 (Fla. 5th DCA 1983), rev. denied, 451 So. 2d 848 (Fla. 1984); R.W. Roberts Construction…
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Bonner v. RCC Assocs., Inc., 679 So. 2d 794 (Fla. 3d DCA 1996)…contractual arbitration rights “by filing the action below, without simultaneously requesting a stay and an order compelling arbitration....” Hough v. JKP Dev., Inc., 654 So. 2d 1241, 1241 (Fla. 3d DCA 1995); see also Hardin Int’l v. Firepak, Inc., 567 So. 2d 1019, 1021 (Fla. 3d DCA 1990)(con-tractor “waived its right to arbitrate the lien dispute when it filed the foreclosure action”). Reversed and remanded.…
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Preferred Mut. Ins. Co. v. Matrix Constr. Corp., 662 So. 2d 432 (Fla. 3d DCA 1995)…We reverse a trial court’s order referring a matter to arbitration, finding that the appel-lees waived the right to arbitrate by seeking the benefits of discovery rules prior to filing their motion to arbitrate. Hardin Int’l, Inc. v. Firepak, Inc., 567 So. 2d 1019 (Fla. 3d DCA 1990); Rolls v. Bliss & Nyitray, Inc., 408 So. 2d 229 (Fla. 3d DCA 1981), appeal dismissed 415 So. 2d 1359 (Fla.1982); Winter v. Arvida Corp., 404 So. 2d 829 (Fla. 3d DCA 1981). Therefore, the matter is returned to the trial court for…
Previewing 3 of 11 citing cases — full citator treatment, depth of discussion, and citing context are member features.
Join FLexlaw to unlock all legal intelligenceAuthorities Cited
- Lapidus v. Arlen Beach Condo. Ass'n, Inc., 394 So. 2d 1102 (Fla. 3d DCA 1981)
- King v. Thompson & McKINNON, 352 So. 2d 1235 (Fla. 4th DCA 1977)
- Ojus Indus., Inc. v. Mann, 221 So. 2d 780 (Fla. 3d DCA 1969)
- Graham Contracting, Inc. v. Flagler Cnty., 444 So. 2d 971 (Fla. 5th DCA 1983)
- Coral 97 Assocs., Ltd. v. Chino Elec., Inc., 501 So. 2d 69 (Fla. 3d DCA 1987)
- Rosen v. Shearson Lehman Bros., Inc., 534 So. 2d 1185 (Fla. 3d DCA 1988)
- Rinker Portland Cement Corp. v. Seidel, 414 So. 2d 629 (Fla. 3d DCA 1982)
- Nova v. State, 414 So. 2d 629 (Fla. 3d DCA 1982)