Jackson v. Shakespeare Foundation, Inc.
108 So. 3d 587
| Fla. | 2013Background
- Shakespeare Foundation sued Jacksons for fraud based on misrepresentations in an advertisement about wetlands in a property sale.
- Jacksons asserted the fraud claim fell within the contract’s arbitration clause, which covers disputes related to the transaction or contract.
- The contract contains a broad arbitration clause stating most disputes will be resolved by mediation and then binding arbitration.
- Shakespeare Foundation alleged reliance on the ad and economic damages arising from the contract.
- Trial court dismissed the fraud action as within arbitration scope; First District reversed and certified conflict with Maguire.
- This Court held the fraud claim has a contractual nexus and is within the contract’s broad arbitration provision.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Is the fraud claim within the contract’s broad arbitration clause? | Shakespeare Foundation: broad clause covers related disputes. | Jacksons: fraud claim is tortious, not arising from contract. | Yes; fraud claim falls within the broad arbitration clause. |
Key Cases Cited
- Seifert v. U.S. Home Corp., 750 So.2d 633 (Fla. 1999) (defines contractual nexus for broad arbitration)
- Maguire v. King, 917 So.2d 263 (Fla. 5th DCA 2005) (confirms arbitration of fraud when contract nexus exists)
- Prima Paint Corp. v. Flood & Conklin Mfg. Co., 388 U.S. 395 (U.S. 1967) (forum arbitration scope includes fraud claims under contract)
- Parfi Holding AB v. Mirror Image Internet, Inc., 817 A.2d 149 (Del. 2002) (broad arbitration clause covers disputes arising out of or in connection with contract)
- Green Tree Agency, Inc. v. White, 719 So.2d 1179 (Ala. 1998) (fraud in inducement within broad arbitration scope)