ST. AUGUSTINE POOLS, INC., APPELLANT,
v.
JAMES M. BARKER, INC., APPELLEE

Fla. 5th DCA | 1997-02-14
No. 96-2210
GRIFFIN and ANTOON, JJ., concur.
687 So. 2d 957 Florida District Court of Appeal, Fifth District (1997) Caution
Cited by 20 cases

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Holding

The court held that the subcontractor agreement did not incorporate the arbitration clause from the general contract, nor did the general contract confer arbitration rights upon the subcontractor.


Headnotes

[1] A subcontract agreement "subject to" a general contract does not automatically incorporate all terms of the general contract, including arbitration clauses, unless intent…

[2] The phrase "subject to" in a contract typically indicates a condition to one party's duty of performance, not a promise by the other.

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Facts & Procedural History

A condominium owner sued the general contractor for construction defects. The general contractor filed a third-party complaint against a subcontractor…

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Opinion of the Court
DAUKSCH, Judge.

DAUKSCH, Judge.

This is an appeal from an order in which the trial court denied appellant’s motion for arbitration. We hold that the subcontractor agreement did not incorporate the arbitration agreement in the general contract. Further, we hold the general contract does not confer on appellant the right to arbitration.

Appellee constructed the Ocean Villas Condominium and subcontracted the construction of different parts of the project out to various companies. Appellant received the contract to install a pool and a cool deck. In October 1995, the Ocean Villas Condominium Association filed a complaint against appellee alleging that it breached various warranties, vio lated applicable building codes and breached its fiduciary responsibility. Appellee, in turn, filed an amended third-party complaint against a number of other companies including appellant. The claim against appellant stated the company constructed the cool deck and the pool in a deficient manner. Appellant filed a motion to dismiss the amended third-party complaint or, in the alternative, to abate or transfer. It argued that the lawsuit was subject to arbitration. The trial court denied appellant’s motion.

Appellant argues two points on appeal. First, it maintains its contract with appellee incorporates by reference the provisions of the general contract containing an arbitration clause. Second, it asserts it is a third-party beneficiary to the general contract and thus entitled to enforce the arbitration clause. We disagree.

The first issue is resolved by interpreting the appropriate section of the subcontract or agreement to determine whether it incorporates the terms of the general contract. Paragraph 16 of the agreement states in relevant part:

16. This Agreement is subject to the General Contract between the Owner and General Contractor. Subcontractor acknowledges that he is familiar with the General Contract and the General Conditions thereof and agrees to comply with all applicable provisions thereof.

The term “subject to” means “liable, subordinate, subservient, inferior, obedient to; governed or affected by; provided that; provided; answerable.” Blaok’s Law DICTIONARY 1425 (6th ed.1990); See also, Homan v. Employers Reins. Corp., 345 Mo. 650, 136 S.W. 2d 289 (1939). The words “subject to” “usually indicate a condition to one party’s duty of performance and not a promise by the other.” Burgess Constr. Co. v. M. Morrin & Son Co., Inc., 526 F. 2d 108, 113 (10th Cir.1975), cert. den., 429 U.S. 866, 97 S.Ct. 176, 50 L.Ed.2d 146 (1976) (citing Am.JuR.2d Contracts § 320 (1964)). Applying these definitions to the subcontractor agreement it is clear that the intent of the parties was to not incorporate the arbitration language of the general contract into the subcontract.

The guiding force in the interpretation of contracts is to determine what the intent of the parties was. This phrase indicates that one party has a condition of performance and therefore the words serve to limit the contract. When read as a whole, paragraph 16 indicates that the general contract is referenced solely to make the subcontractor aware of its duties and requirements. The subcontractor does not have a duty or requirement to arbitrate any disagreements. The language of paragraph 15 establishes that the parties’ intention was that “any claim or cause of action against the Contractor or Owner arising out of, in connection with, or by virtue of the relationship created by this Agreement, shall be brought and filed in ... and shall be heard by a judge of the appropriate court therein.”

In regard to the second issue, appellant relies on section 5.3.1 of the general conditions of the contract to demonstrate that it is allowed the right to arbitration. Section 5.3.1 provides in pertinent part:

5.3.1 By an appropriate agreement, written where legally required for validity, the Contractor shall require each Subcontractor, to the extent of the Work to be performed by the Subcontractor, to be bound to the Contractor by the terms of the Contract Documents, and to assume toward the Contractor all the obligations and responsibilities which the Contractor, by these Documents, assumes toward the Owner and the Architect. Said agreement shall preserve and protect the rights of the Owner and the Architect under the Contract Documents with respect to the Work to be performed by the Subcontractor so that the subcontracting thereof will not prejudice such rights, and shall allow to the Subcontractor, unless specifically provided otherwise in the Contractor-Subcontractor agreement, the benefit of all rights, remedies, and redress against the contractor that the Contractor, by these Documents, has against the Owner, [emphasis added]

This language, when read as a whole, does not confer the right to arbitration upon appellant. Appellee correctly points out that paragraph 15 of the subcontractor agreement provides that any dispute shall be brought in court. Therefore this section does not confer on appellant the right to arbitration.

AFFIRMED.

GRIFFIN and ANTOON, JJ., concur.


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Citator

Cited By (13 total)

  • Allstate Ins. Co. v. Orthopedic Specialists, 212 So. 3d 973 (Fla. 2017)
    …g., Oxford American Dictionary & Thesaurus 1301-02 (2nd ed. 2009) (defining “subject to” in relevant part as “dependent or conditional on” or “under someone’s or something’s control or authority”); St. Augustine Pools, Inc. v. James M. Barker, Inc., 687 So. 2d 957, 958 (Fla. 5th DCA 1997) (“The term ‘subject to’ means ‘liable, subordinate, subservient, inferior, obedient to; governed or affected by; provided that; provided; answerable.’” (quoting Black’s Law Dictionary 1425 (6th ed. 1990))). Because insurance…
  • …hierarchical effect of overlapping provisions, the phrase “subject to” is very commonly used to signal subordination. See Bryan A. Garner, Gamer’s Dictionary of Legal Usage 616 (2011 ed.); see also St. Augustine Pools, Inc. v. James M. Barker, Inc., 687 So. 2d 957, 958 (Fla. 5th DCA 1997) (citing Black’s Law Dictionary 1425 (6th éd. 1990)) (defining “subject to” as “liable, subordinate, subservient, inferior, obedient to; governed or affected by; provided that; provided; answerable”). Allstate’s fee schedule…
  • Orthopedic Specialists v. Allstate Ins. Co., 177 So. 3d 19 (Fla. 4th DCA 2015)
    …Fla. Broward County, Cnty. Ct.2012) (Lee, J.) this Court held: By use of the phrase “subject to,” Allstate has not incorporated the optional provisions of the Medicare fee cap into the policy. See St. Augustine Pools, Inc. v. James M. Barker, Inc., 687 So. 2d 957, 958 (Fla. 5th DCA 1997) ... (the words “subject to” in a contract are distinct from “incorporating” provisions of another document). Allstate has said [*25] nothing more than what is already true. All PIP policies are “subject to” these provisions;…

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