Jupiter Medical Center, Inc. v. Visiting Nurse Ass'n of Florida, 72 So. 3d 184

Appellant sought to vacate an arbitral award on the ground the contract was illegal; the trial court dismissed the action and enforced the award, but the court cannot enforce an illegal contract and reversed to consider legality.
VNA purchased Jupiter Medical Center’s home health care business for $639,000 under a Home Health Care Agreement containing a broad arbitration clause.
VNA claimed JMC breached the contract and the arbitration panel awarded VNA $1,251,213 in damages.
JMC moved to re-open arbitration arguing the contract, as construed by the arbitrators, violated state and federal law; the motion was denied.
JMC then sought to vacate the award in federal court (dismissed for lack of jurisdiction) and subsequently in Palm Beach County circuit court, where VNA moved to dismiss and to enforce the award.
The trial court did not address the contract’s legality before enforcing the award; the appellate court reverses and remands to determine legality first.

Issue	Plaintiff's Argument	Defendant's Argument	Held
Whether enforcement of an arbitral award may proceed if the contract is alleged illegal.	JMC: illegality should bar enforcement regardless of arbitration.	VNA: court should enforce based on breach of contract as determined by arbitrators; illegality not contemplated under Fla. §682.13(1).	The trial court must determine contract legality before enforcing the award.
Whether JMC waived the illegality defense.	JMC raised illegality at arbitration and in later proceedings; defense was not waived.	VNA contends no waiver because the defense was not decided earlier.	No waiver; illegality defense can be decided on remand.

Gonzalez v. Trujillo, 179 So.2d 896 (Fla. 3d DCA 1965) (contracts tainted with illegality are unenforceable)
Harris v. Gonzalez, 789 So.2d 405 (Fla. 4th DCA 2001) (illegality confers no enforceable rights)
Schaal v. Race, 135 So.2d 252 (Fla. 2d DCA 1961) (no right founded on an illegal contract can be enforced)
Bosem v. Musa Holdings, Inc., 46 So.3d 42 (Fla. 2010) (legal standard for de novo review of legality issue)
Party Yards, Inc. v. Templeton, 751 So.2d 121 (Fla. 5th DCA 2000) (arbitration cannot validate illegal acts; legality must be addressed)
I.U.B.A.C. Local Union No. 31 v. Anastasi Bros. Corp., 600 F.Supp. 92 (S.D. Fla. 1984) (court may not enforce an illegal contract; legality must be decided before enforcement)
Hill v. Norfolk & W.Ry. Co., 814 F.2d 1192 (7th Cir. 1987) (arbitrator cannot order performance of an illegal act)
Local No. 234, etc. v. Henley & Beckwith, Inc., 66 So.2d 818 (Fla.1953) (no enforceable rights arise from an illegality)