102 So. 3d 722
Fla. Dist. Ct. App.2012Background
- Lakes and Isle are adjacent HOAs within Ibis Golf & Country Club; Lakes governs Phase I, Isle governs Phase II.
- They signed a Shared Common Expense Agreement in 1997 to share use of Lake Boulevard, common areas, and related maintenance costs.
- The Agreement assigns maintenance duties to Lakes and outlines budgetary sharing, including specific percentages for various expense items (a–h) and annual reconciliations with Isle.
- Arbitration clauses: Paragraph 9 (specific to Isle’s non-performance; inapplicable here), Paragraph 10 (maintenance-default triggers arbitration), and Paragraph 20 (broad arbitration for disputes arising from the Agreement).
- Isle demanded arbitration with the AAA in Oct 2011 over insurance charges; Lakes sued to enjoin arbitration in Oct 2011.
- The trial court granted abate-and-compel arbitration in March 2012, finding a valid agreement to arbitrate, an arbitrable issue, and no waiver.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether a valid arbitrable issue exists under the Agreement | Lakes argues Paragraph 20 is limited by 9–10 via ejusdem generis | Isle contends Paragraph 20 broadly requires arbitration for any disputes | Arbitrable; Paragraph 20 controls and encompasses the dispute, not precluded by 9–10. |
| Whether Isle waived its right to arbitration | Isle’s discovery/production request after arbitration motion shows waiver | Waiver not shown; discovery was limited and arbitration was pending | No waiver; court affirmed arbitration. |
Key Cases Cited
- Seifert v. U.S. Home Corp., 750 So.2d 633 (Fla. 1999) (three elements for court: valid arbitration, arbitrable issue, waiver)
- Shotts v. OP Winter Haven, Inc., 86 So.3d 456 (Fla. 4th DCA 2011) (court determines existence of a valid arbitration agreement)
- Kel Homes, LLC v. Burris, 933 So.2d 699 (Fla. 2d DCA 2006) (specific arbitration provisions control; general provisions may apply to remaining disputes)
- Raines v. Palm Beach Leisureville Cmty. Ass’n, 317 So.2d 814 (Fla. 4th DCA 1975) (ejusdem generis with conflicts between specific and general provisions)
- Gordon v. Shield, 41 So.3d 931 (Fla. 4th DCA 2010) (discovery related to merits can indicate waiver)
- McLeod v. Green Tree Servicing, 15 So.3d 682 (Fla. 2d DCA 2009) (discovery directed to merits can constitute waiver)
- Lion Gables Realty Ltd. v. Randall Mechanical, 65 So.3d 1098 (Fla. 5th DCA 2011) (extensive merits discovery can waive arbitration)
- Pavarini Constr. Co. v. Federated Dept. Stores, 425 So.2d 1212 (Fla. 4th DCA 1983) (waiver question may be decided by court unless arbitrators are requested)
- Aetna Life Ins. Co. v. White, 242 So.2d 771 (Fla. 4th DCA 1970) (principle of precedence of specific provisions over general)