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MAURO LEDER AND PATRICIA LEDER v. IMBURGIA CONSTRUCTION SERVICES, INC.
21-0218
| Fla. Dist. Ct. App. | Jul 28, 2021
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Background

  • Owners and Contractor executed a written residential renovation contract that includes a multi-step dispute-resolution process: claims to an Initial Decision Maker (Miami Shores Village Building Dept. Official) within 21 days, then mediation, then binding arbitration.
  • The contract makes the Initial Decision Maker step a condition precedent to mediation, and mediation a condition precedent to arbitration; failure to follow the conditions can waive the right to arbitration.
  • On June 25, 2019 Contractor presented a fifth change order; Owners refused to sign and questioned necessity and price. Contractor allegedly abandoned the job, left unpaid subcontractor bills, and Owners claim they overpaid for work performed.
  • Owners filed suit in January 2020 and amended their complaint seeking monetary damages; they alleged Contractor failed to file a claim with the Initial Decision Maker and thus waived contractual dispute-resolution rights.
  • Contractor moved to dismiss the amended complaint, arguing the contract required arbitration (but did not move to compel arbitration specifically); the trial court granted dismissal for failure to comply with the contract’s dispute-resolution provisions.
  • The appellate court reversed, holding the parties waived arbitration under the contract because neither party initiated the Initial Decision Maker claim (the condition precedent), and remanded with instructions to require Contractor to answer the amended complaint.

Issues

Issue Leder's Argument Imburgia's Argument Held
Is there a valid written arbitration agreement? Contract’s arbitration clause is valid but was not followed. There is a valid, binding arbitration agreement requiring court to enforce arbitration. Yes — a valid written agreement existed.
Does the dispute fall within the scope of the arbitration clause (arbitrable issue)? The fifth change order dispute arises under the contract and is arbitrable. Same — dispute arises from the contract and is arbitrable. Yes — the dispute was arbitrable.
Was the right to arbitrate waived by the Contractor? Contractor waived arbitration by not initiating the contract’s required Initial Decision Maker process and by litigating instead. Contractor contended arbitration was available and it had not waived the right; argued dismissal was proper for failure to follow dispute-resolution steps. Waiver found: because neither party submitted a claim to the Initial Decision Maker (a condition precedent), the contractual pathway to arbitration was abandoned and arbitration was waived.

Key Cases Cited

  • Green Tree Servicing, LLC v. McLeod, 15 So. 3d 682 (Fla. 2d DCA 2009) (standards for arbitration agreement existence, arbitrability, and waiver; review standards)
  • Stacy David, Inc. v. Consuegra, 845 So. 2d 303 (Fla. 2d DCA 2003) (framework for determining arbitrability)
  • Bland v. Green Acres Grp., L.L.C., 12 So. 3d 822 (Fla. 4th DCA 2009) (waiver may be predicated on pre- and post-suit actions)
  • Nat’l Found. for Cancer Rsch. v. A.G. Edwards & Sons, Inc., 821 F.2d 772 (D.C. Cir. 1987) (analyzing waiver by actions inconsistent with arbitration right)
  • Seville Condo. #1, Inc. v. Clearwater Dev. Corp., 340 So. 2d 1243 (Fla. 2d DCA 1976) (prosecution/defense of litigation may constitute waiver of arbitration)
Read the full case

Case Details

Case Name: MAURO LEDER AND PATRICIA LEDER v. IMBURGIA CONSTRUCTION SERVICES, INC.
Court Name: District Court of Appeal of Florida
Date Published: Jul 28, 2021
Docket Number: 21-0218
Court Abbreviation: Fla. Dist. Ct. App.