FORTUNE INSURANCE COMPANY, APPELLANT,
v.
U.S.A. DIAGNOSTICS, INC., APPELLEE
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Fortune Insurance Company appealed an order denying its motion to compel arbitration of a dispute with USA Diagnostics over timely payment of personal injury protection (PIP) benefits and statutory penalty interest. The court reversed, holding that the insurance policy's broad arbitration clause covering "any claims dispute" requires arbitration of the late payment interest claim.
The court held that the dispute must be arbitrated. The insurance policy's broad language requiring arbitration of "any claims dispute" encompasses the late payment interest claim, and any doubts about the scope of arbitration should be resolved in favor of arbitration.
[1] A written agreement to arbitrate any claims dispute is valid, enforceable, and irrevocable, regardless of whether the controversy is justiciable.
[2] When considering a motion to compel arbitration, a trial court's role is limited to determining the existence of a valid written agreement, whether an arbitrable issue ex…
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Join FLexlaw to unlock all legal intelligence“Arbitration is favored under Florida law, and courts indulge every reasonable presumption to uphold proceedings resulting in an award.”
Establishes the strong policy favoring arbitration in Florida law
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Join FLexlaw to unlock all legal intelligenceUSA Diagnostics, assigned PIP benefits from a policyholder, sued Fortune Insurance for failing to timely pay PIP claims under Florida statute section …
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PER CURIAM.
We reverse an order denying Fortune Insurance Company’s motion to compel arbitration in a lawsuit against it involving PIP claims. U.S.A. Diagnostics, Inc. (USA)1 claims that Fortune failed to timely pay PIP claims, as mandated by section 627.786(4)(b), Florida Statutes, and seeks damages, including 10% penalty interest authorized by statute. The lawsuit also geeks treatment as a class action. Fortune asserts that both its insurance policy and section 627.736(5), Florida Statutes, require binding arbitration of claims involving medical benefits arising between insurer and provider where the provider has agreed to accept an assignment of personal injury protection benefits.
The Fortune Insurance policy provides: Any claims dispute between us [Fortune Insurance Company] and a medical service or supplies provider who has agreed to accept an assignment of benefits shall be decided by arbitration....
Section 627.736(5), Florida Statutes, provides in pertinent part:
Every insurer shall include a provision in its policy for personal injury protection benefits for binding arbitration of any claims dispute involving medical benefits arising between the insurer and any person providing medical services or supplies if that person has agreed to accept assignment of personal injury protection benefits.
The trial court determined that the arbitration sought, is not governed by section 627.736(5), as the sole dispute is whether Fortune is required to pay a statutory penalty pursuant to section 627.736(4)(e), Florida Statutes, for failure to timely pay PIP benefits. The trial court also concluded that the arbitration provision in section 627.736(5) applies only where the insurance company believes that a health care provider has charged an unreasonable amount.
Arbitration is favored under Florida law, and courts indulge every reasonable presumption to uphold proceedings resulting in an award. Roe v. Amica Mutual Ins. Co., 533 So. 2d 279 (Fla.1988). The trial court’s role when considering motions to compel arbitration is limited to determining whether a valid written agreement exists, whether an arbitrable issue exists, and whether the right to arbitration was waived. Piercy v. School Board, 576 So. 2d 806 (Fla. 1st DCA 1991).
Section 682.02, Florida Statutes, provides that when parties agree in writing to submit to arbitration any controversy existing between them at the time of the agreement, or include in a written contract a provision for settlement by arbitration of any controversy arising between them relating to the contract, that provision shall be “valid, enforceable and irrevocable without regard to the justiciable character of the controversy ...”
Here, the trial court focused on arbitrability under the statute rather than the language used in the Fortune Insurance Company contract, which is broader in scope than the statute. The policy provides for arbitration of “any claims dispute” regardless of whether it is one involving medical benefits. We, therefore, need not resolve any issue of statutory interpretation in this appeal, as the policy determines that the issue in question here is subject to arbitration. Roe v. Amica Mutual Insurance Co. Any doubts about the scope of arbitration should be resolved in favor of arbitration. Ronbeck Construction Co., Inc. v. Savanna Club Corp., 592 So. 2d 344 (Fla. 4th DCA 1992). See also Regency Group, Inc. v. McDaniels, 647 So. 2d 192 (Fla. 1st DCA 1994); Beaver Coaches, Inc. v. Revels Nationwide R.V. Sales, Inc., 543 So. 2d 359 (Fla. 1st DCA 1989).
USA also argues that since Fortune paid the PIP payments to the claimant, there is no remaining “claims dispute” to arbitrate. However, although the insurance company paid PIP payments, there remains a dispute over a claim for late payment interest.
Therefore, we reverse the order denying arbitration, and remand for further proceedings.
DELL, STONE and FARMER, JJ., concur. . USA bases its claim on an assignment from a PIP policy holder.
Cases With Similar Vibessemantic neighbors from the corpus
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Terminix Int'l Co., LP v. Ponzio, 693 So. 2d 104 (Fla. 5th DCA 1997)…ing 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 th…
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Boone v. Etkin, 771 So. 2d 559 (Fla. 4th DCA 2000)…whether a valid written agreement exists, whether an arbi-trable issue exists, and whether the right to arbitration was waived. Nestler-Poletto Realty, Inc. v. Kassin, 730 So. 2d 324 (Fla. 4th DCA 1999); Fortune Ins. Co. v. U.S.A. Diagnostics, Inc., 684 So. 2d 208 (Fla. 4th DCA 1996). The Supreme Court of Florida has made clear the determination of whether a [*561] particular claim must be submitted to arbitration necessarily depends on the existence of some nexus between the dispute and the contract contain…
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Nestler-Poletto Realty, Inc. v. Kassin, 730 So. 2d 324 (Fla. 4th DCA 1999)…ole when considering motions to compel arbitration is limited to determining whether a valid written agreement exists, whether an arbitrable issue exists, and whether the right to arbitration was waived. Fortune Ins. Co. v. U.S.A. Diagnostics, Inc., 684 So. 2d 208 (Fla. 4th DCA 1996). [*326] However, contractual arbitration is only mandated for controversies or disputes which the parties have agreed to submit to arbitration. Pacemaker Corp. v. Euster, 357 So. 2d 208 (Fla. 3d DCA 1978); Painewebber, Inc. v. He…
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
- Ronbeck Constr. Co., Inc. v. Savanna Club Corp. & Savanna Club Realty Inc., 592 So. 2d 344 (Fla. 4th DCA 1992)
- ROE v. AMICA Mut. Ins. Co., 533 So. 2d 279 (Fla. 1988)
- Vance Lamar Larsen v. State, 543 So. 2d 359 (Fla. 1st DCA 1989)
- The Regency Grp., Inc. v. McDANIELS, 647 So. 2d 192 (Fla. 1st DCA 1994)
- Piercy v. The Sch. Bd. OF Wash. Cnty., 576 So. 2d 806 (Fla. 1st DCA 1991)