Primed, Inc. v. Dallas General Life Insurance Company
8:11-cv-02002
M.D. Fla.Feb 28, 2012Background
- PriMed, Inc. sought to confirm an arbitration award against Dallas General Life Insurance Co. and Jefferson Life Insurance Co.
- The FAA governs this proceeding because the underlying contract involved interstate commerce.
- The arbitrator issued a detailed award finding breach by Respondents; the court later held a hearing on PriMed’s summary judgment and Respondents’ vacatur motion.
- PriMed moved for summary judgment to confirm the award; Respondents moved to vacate the award under 9 U.S.C. § 10.
- The court granted summary judgment and denied vacatur, concluding the FAA applies and the award is not subject to vacatur.
- Key issues include whether vacatur bases are met, illegality/foreign-MFA arguments, and whether Respondents waived jurisdictional challenges.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| FAA governs the award’s confirmation | PriMed argues FAA applies because interstate commerce was involved. | Respondents contend Florida law governs and arbitration should be vacated on grounds raised. | FAA governs. |
| Grounds to vacate the arbitration award exist | PriMed maintains no valid § 10(a) ground applies. | Respondents assert various vacatur theories, including exceeding powers, illegality, and manifest disregard. | No valid grounds found; vacatur denied. |
| Illegality and MFA-related challenges to arbitrability | PriMed contends MFA does not bar arbitration in this contract with interstate elements. | Respondents argue Florida insurance law and MFA block arbitration. | Arbitration and FAA enforcement permitted; MFA not dispositive. |
| Waiver of jurisdictional objections | PriMed asserts no waiver issue; objections were timely given arbitration consent. | Respondents argued jurisdiction objections should have been raised earlier. | Arguments waived; timely objection not preserved. |
Key Cases Cited
- Cat Charter, LLC v. Schurtenberger, 646 F.3d 836 (11th Cir. 2011) (reasoned, detailed arbitration awards should be confirmed)
- White Springs Agric. Chems., Inc. v. Glawson Invs. Corp., 660 F.3d 1277 (11th Cir. 2011) (presumption favoring confirmation of arbitration awards)
- Frazier v. CitiFinancial Corp., LLC, 604 F.3d 1313 (11th Cir. 2010) (manifests the standard and limits for vacatur)
- Hercules Steel Co. v. Hercules Steel Co., 441 F.3d 905 (11th Cir. 2006) (manifest disregard not a valid vacatur ground; requires knowing and intentional disregard)
- Montes v. Shearson Lehman Bros., Inc., 128 F.3d 1456 (11th Cir. 1997) (arbitration awards entitled to deference when properly conducted)
- Della Penna v. Zabawa, 931 So.2d 155 (Fla. 5th DCA 2006) (waiver of arbitration objection when not timely raised in arbitration)
- Hall Street Assoc., L.L.C. v. Mattel, Inc., 552 U.S. 576 (U.S. 2008) (four grounds for vacatur; federal law governs arbitrator review context)
- Rewards Hotel Mgmt. Co., LLC v. Elite Gen. Contractors, Inc., 860 So.2d 1011 (Fla. 3d DCA 2003) (Florida law recognizing FAA supremacy in interstate-arbitration contexts)