ABEL HOMES AT NARANJA VILLAS, LLC, Appellant,
v.
Anselmo HERNANDEZ and Juaquin Lloveras, Appellees.
District Court of Appeal of Florida, Third District.
*892 Hermelee & Geffin, and Alan G. Geffin, Miami, and Christopher Perez-Gurri, for appellant.
Billbrough & Marks, P.A., and Geoffrey B. Marks, Coral Gables; Quintana and Associates, P.A., and J. Luis Quintana; and Gonzalo R. Dorta, Miami, for appellees.
Before GERSTEN, C.J., and ROTHENBERG, J., and SCHWARTZ, Senior Judge.
ROTHENBERG, Judge.
The defendant, Abel Homes at Naranja Villas, LLC ("Developer"), appeals a non-final order of the trial court denying its *893 motion to stay the proceedings and compel arbitration, arguing that pursuant to the parties' agreements, it is entitled to elect arbitration of the claims asserted against it by the plaintiffs, Anselmo Hernandez and Juaquin Lloveras ("Purchasers"). Because we find that the Developer failed to elect arbitration within the time specified under the clear and unambiguous language of the arbitration provision, we affirm.
The facts pertaining to the issue on appeal are as follows. The parties entered into two identical real estate purchase agreements for the purchase of two condominium units to be built by the Developer ("Agreements"). Pursuant to the terms of the Agreements, the Purchasers placed in escrow with the Developer's escrow agent deposits in the amount of $19,390.00 for each respective unit. Section 29 of the Agreements contains an arbitration provision, which specifies that:
Purchaser agrees to as follows: Prior to commencing any legal proceeding against [Developer], or any of [Developer's] affiliates, Purchaser shall give [Developer] twenty (20) days written notice of its claim. If [Developer] elects to have Purchaser's claim submitted to Arbitration, then Purchaser shall be first obligated to have his or her claim process through Arbitration proceedings pursuant to the rules of the American Arbitration Association. If [Developer] elects not to submit Purchaser's claim to Arbitration, then Purchaser may proceed by Legal process against [Developer].
On or about November 13, 2006, when the construction of the units had not been completed as contemplated by the parties' Agreements, the Purchasers, through their counsel and pursuant to the above arbitration provision, notified the Developer of their intent to commence litigation if the Developer did not return to them their escrow deposits. When the Developer failed to respond or to refund the Purchasers' deposits, the Purchasers filed an eight count complaint on December 6, 2006 against the Developer. After requesting an extension of time to respond and prior to filing an answer, the Developer filed a motion to stay the proceedings and to compel arbitration based on the above arbitration provision, which the trial court denied. The Developer appeals the trial court's non-final order denying its motion to stay and to compel arbitration.
We review an order denying a motion to compel arbitration de novo. Waterhouse Constr. Group, Inc. v. 5891 SW 64th St., LLC,
Since "arbitration provisions are contractual in nature, construction of such provisions and the contracts in which they appear remains a matter of contract interpretation." Seifert,
In reaching this conclusion, we recognize that all doubts concerning the scope or waiver of the right to arbitrate under contracts are to be resolved in favor of arbitration. See Waterhouse Constr.,
In the instant case, the terms of the arbitration provision provide that prior to even commencing legal action against the Developer, the Purchasers were required to give the Developer twenty days' notice of their claims. If the Developer elected to have the matter processed through arbitration, the Purchasers were required to arbitrate their claims. Thus, whether or not to resolve the Purchasers' claims through arbitration process rested, pursuant to the Agreements which were drafted by the Developer, with the Developer. It is only after notice to the Developer and the expiration of the twenty-day waiting period without either a successful resolution of its claims or a demand for arbitration by the Developer, that the Purchasers were contractually permitted to proceed with legal action against the Developer. It is undisputed that the Purchasers gave the Developer the requisite notice; the Developer failed to elect arbitration within the time provided pursuant to the arbitration provision in the Agreements; and the Purchasers, having heard nothing from the Developer, filed their claims in the circuit court.
The Developer argues that its obligation to elect arbitration pursuant to the Agreements, was open-ended. We disagree as we conclude that the terms of the arbitration provision are clear and unambiguous, and to conclude otherwise would render the twenty-day notice requirement meaningless.
The Developer further argues that even if it was required to elect arbitration within a specific period of time, the trial court erred in deciding the issue, as the issue of timeliness of a demand for arbitration is a question of fact for the arbitrator to decide, not the trial court. While we acknowledge that "in general, issues of timeliness are to be decided by the arbitrator," O'Keefe Architects, Inc. v. CED Constr. Partners, Ltd.,
We need not address the other arguments raised on appeal, as our finding that the Developer did not timely elect to arbitrate is dispositive.
Affirmed.
