Younessi v. Recovery Racing, LLC
2012 Fla. App. LEXIS 7337
| Fla. Dist. Ct. App. | 2012Background
- Younessi and Recovery Racing entered into an agreement with an arbitration clause under AAA Rules.
- Recovery Racing filed a lawsuit instead of pursuing arbitration; Younessi moved to compel arbitration and stay proceedings.
- The trial court ordered the parties to select an arbitrator, which the appellate court reverses.
- The court holds the controversy was not moot at the time of appeal and that a live dispute existed.
- The court notes jurisdiction over non-final determinations allowing arbitration outside the agreement.
- The contract clearly incorporates AAA Rules; AAA procedures apply for arbitrator selection in this case.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the trial court erred in ordering an arbitrator despite the AAA arbitration clause. | Younessi argues AAA governs; court should compel arbitration. | Recovery Racing argues court may appoint arbitrator regardless of AAA. | Reversed; court erred in ordering arbitrator. |
| Whether the dispute was moot at the time of appeal. | Recovery Racing contends no live issue remained. | Younessi contends a live controversy persisted. | Not moot; a live controversy existed. |
| Whether Florida courts can appoint an arbitrator when the agreement lacks a named arbitrator. | Younessi relies on AAA rules to determine arbitrator. | Recovery Racing argues appointment authority may be inferred. | AAA rules provide method; no court appointment authority. |
| Whether Younessi waived arbitration by partially litigating. | Younessi did not substantially participate inconsistent with arbitration. | Recovery Racing argues waiver due to litigation participation. | No waiver proven; arbitration rights preserved. |
Key Cases Cited
- Ivax Corp. v. B. Braun of Am., Inc., 286 F.3d 1309 (11th Cir. 2002) (waiver standard for arbitration participation (Eleventh Circuit))
- S & H Contractors, Inc. v. A.J. Taft Coal Co., 906 F.2d 1507 (11th Cir.1990) (waiver and arbitration related principles (Eleventh Circuit))
- Godwin v. State, 593 So.2d 211 (Fla.1992) (live controversy requirement in mootness analysis (Fla. Supreme Court))
- BDO Seidman, LLP v. Bee, 970 So.2d 869 (Fla.4th DCA 2007) (courts may review non-final arbitration-related orders (Florida))