FORTUNE INSURANCE COMPANY, PETITIONER,
v.
USA DIAGNOSTICS, INC., AND MAGNETIC IMAGING SYSTEMS, I, LTD., RESPONDENTS
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Fortune Insurance petitioned for a writ of certiorari to challenge an order denying its motion to stay arbitration proceedings. The court held that Fortune failed to demonstrate the circuit court departed from the essential requirements of law, and denied the petition because the arbitration panel had not yet certified a class action.
The court held that Fortune failed to demonstrate the circuit court departed from the essential requirements of law. The court reasoned that because the arbitration panel had not yet certified a class action, Fortune's argument based on the Rosales class certification had no bearing. The court denied the petition for writ of certiorari.
[1] A circuit court's determination that an issue of arbitrator jurisdiction is premature is not a departure from the essential requirements of law, thus precluding certiorar…
[2] A party seeking to stay arbitration proceedings based on exclusive jurisdiction of another court must demonstrate that a class has been certified in the other action.
Previewing 2 of 4 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“until the panel decides whether to certify the proposed class action before it, petitioner's argument has no bearing”
The court's rationale for why Fortune's reliance on the Rosales class certification was premature and inapplicable to the arbitration proceedings
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Join FLexlaw to unlock all legal intelligenceUSA Diagnostics, Inc., as assignee of one of Fortune Insurance's insureds, sought damages for unpaid interest in circuit court and sought class action…
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POLEN, J.
In this timely petition for writ of certiorari, petitioner challenges an order which denied its motion to stay arbitration proceedings. This case began after respondent USA Diagnostics, Inc. sought damages in Broward County Circuit Court for unpaid interest as an assignee of one of petitioner’s insureds. It also sought class action status for the claim. Thereafter, petitioner filed a motion to compel arbitration of the respondent’s claim pursuant to section 627.736, Florida Statutes (1993), and the insured’s underlying policy. The trial court first denied the petitioner’s motion, but later compelled arbitration pursuant to this court’s mandate in Fortune Insurance Co. v. U.S.A. Diagnostics, Inc., 684 So. 2d 208 (Fla. 4th DCA 1996).
During arbitration, the panel determined that it could decide whether the claim was suitable for class action status. Petitioner then moved in circuit court for a protective order from discovery in arbitration, to stay arbitration, and for a determination of the jurisdiction of the arbitrators. The circuit court granted the motion for the protective order as to discovery but denied the motion to stay the arbitration and determine the jurisdiction of the arbitrators. It held the jurisdiction issue was premature. The arbitration panel proceeded to conduct a final hearing in which it would consider whether the class should be certified, and determine the liability of petitioner to and potential damages of this uncertified class.
Petitioner then moved to stay the proceedings with the panel, maintaining that the Dade County Circuit Court had entered an order certifying a class in an identical action against petitioner in Rosales v. Fortune Insurance Co., Case No. 98-4588 CA 41. Petitioner claimed that the Rosales case encompasses the class that respondent seeks to have the arbitration panel certify. The panel denied the petitioner’s request for stay and continued with the arbitration hearing. Petitioner then filed a motion in the circuit court to stay the panel from proceeding on the class action allegations, but the court denied the motion. This latter order is the subject of the instant petition for writ of certiorari.
Petitioner, citing to Hoechst Celanese Corp. v. Fry, 693 So. 2d 1003 (Fla. 3d DCA), review denied, 700 So. 2d 685 (Fla.1997), argues that the Dade County Circuit Court in the Rosales action has exclusive jurisdiction over the class action by virtue of being the “first to certify.” However, petitioner neglects to mention that the arbitration proceedings which were before the Broward Circuit Court in this case have not resulted in a certified class action to date. In fact, they may never be. Rather, until the panel decides whether to certify the proposed class action before it, petitioner’s argument has no bearing. Accordingly, we hold that it has failed to demonstrate that the circuit court departed from the essential requirements of law in this case and, as such, deny the petition. See Martin-Johnson, Inc. v. Savage, 509 So. 2d 1097 (Fla.1987).
DENIED.
STEVENSON and SHAHOOD, JJ., concur.
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Citator
Authorities Cited
- Martin-Johnson, Inc. v. Savage, 509 So. 2d 1097 (Fla. 1987)
- Hoechst Celanese Corp. v. FRY, 693 So. 2d 1003 (Fla. 3d DCA 1997)
- Fortune Ins. Co. v. U.S.A. Diagnostics, Inc., 684 So. 2d 208 (Fla. 4th DCA 1996)