Estate of Deresh ex rel. Schneider v. FS Tenant Pool III Trust
95 So. 3d 296
| Fla. Dist. Ct. App. | 2012Background
- Estate of Frances Deresh timely appeals a non-final order compelling arbitration in a wrongful death action against nursing home defendants.
- Arbitration agreement required binding arbitration for disputes involving potential monetary amount over $25,000, with 1–3 arbitrators and AAA rules, and allowed economic and non-economic damages but barred punitive damages.
- Agreement included a severability clause; the panel could award equitable, economic, and non-economic damages but not punitive damages.
- Estate asserted multiple claims including nonlethal and lethal negligence, wrongful death, breach of fiduciary duty, and violations of Fla. Stat. § 415.1111.
- Circuit court granted motion to compel arbitration; estate argued the punitive-damages limitation violated public policy and that severability issues from Shotts and Gessa applied.
- Court affirmed the order to compel arbitration and remanded to sever the punitive-damages provision from the arbitration agreement.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the case falls within the arbitration agreement’s $25,000 threshold | Deresh argues the case involves potential damages exceeding $25,000. | Defendants contend the dispute falls within the agreement’s scope and threshold. | Yes; arbitration compelled. |
| Whether the punitive damages limitation is severable from the arbitration agreement | Deresh contends the punitive-damages cap is invalid and not severable per Shotts/Gessa. | Defendants contend severability may be appropriate under the agreement. | Punitive-damages limitation is severable. |
| Whether severing the punitive-damages limitation preserves the arbitration agreement | Deresh argues severance would undermine remedies provided by statute. | Defendants argue severance preserves the arbitration forum and statutory rights remain vindicable. | Severing preserves the agreement and permits arbitration to proceed. |
Key Cases Cited
- Shotts v. OP Winter Haven, Inc., 86 So.3d 456 (Fla.2011) (punitive-damages limits conflicted with public policy; severability analyzed)
- Gessa v. Manor Care of Fla., Inc., 86 So.3d 484 (Fla.2011) (non-severability where provisions viewed jointly; remedies and severability explored)
- Alterra Healthcare Corp. v. Bryant, 937 So.2d 263 (Fla.4th DCA 2006) (arbitration of statutory claims with effective vindication rights)
- Powertel, Inc. v. Bexley, 743 So.2d 570 (Fla.1st DCA 1999) (three elements for motion to compel arbitration)
- Seifert v. U.S. Home Corp., 750 So.2d 633 (Fla.1999) (three-element test for arbitration enforceability)