BEVERLY HILLS DEVELOPMENT CORPORATION, et al., Appellant,
v.
GEORGE WIMPEY OF FLORIDA, INC., etc., Appellee.
District Court of Appeal of Florida, Fifth District.
*970 Stеphen W. Johnson and John R. Reid, Jr., of McLin, Burnsed, Morrison, Johnson & Robuck, P.A., Leesburg, for Appellant.
Laura L. Jacobs and Howard S. Marks, of Graham, Clark, Jones, Pratt & Marks, Winter Park, for Appellee.
W. SHARP, Judge.
Beverly Hills Development Corporation (Beverly Hills) appeals from an order compelling arbitration after George Wimpey of Flоrida, Inc. (Wimpey) brought a motion to compel arbitration in a lawsuit instituted by Wimpey. Wimpey's lawsuit alleged breach of an option contract by Beverly Hills for its failure to close on certain real property. We reverse.
On February 23, 1989, the parties еntered into a lengthy option contract for, inter alia, 1,600 acres of residentially-zoned lаnd, 148 acres of commercially zoned land, 70 finished lots with construction in progress, and existing plans, specifications and permits. The contract was for a term of 20 yeаrs, and Wimpey, as optionee, made an initial payment of 1.5 million dollars. Wimpey was further required to comply with certain minimum purchase requirements, and in the event it failеd to do so, the contract provided that Beverly Hills had the right to terminate the oрtion in writing, within ten days of the close of the year in which the breach occurred. Subsequently, several amendments and extension agreements to the option contraсt were executed by the parties, one of which contained a provision that any disputes "shall be settled by arbitration."[1]
In December of 1994, Wimpey filed its complaint, withоut having first sought arbitration. Nor did it seek arbitration simultaneously with the filing of the complaint. In Januаry of 1995, Beverly Hills brought a motion to dismiss the complaint and compel arbitration, which Wimрey opposed. Approximately one month later, in February of 1995, Wimpey revеrsed its position and, for *971 the first time, sought arbitration by bringing a motion to compel. Howevеr, in March of 1995, Beverly Hills reversed its position and withdrew its motion to compel arbitration. Instead it filed an amended motion to dismiss based solely on a claim of failure to state a cause of aсtion. After a hearing, the trial court granted Wimpey's motion to compel arbitratiоn, and this appeal followed.
We start our analysis by noting that Florida law favors arbitration over litigation to resolve private disputes. North American Van Lines v. Collyer,
However, a valid contractual right to arbitrate a dispute may be waivеd. Klosters Rederi A/S v. Arison Shipping Co.,
Waiver may also occur by active participation in a lawsuit, or by taking action which is inconsistent with the right to arbitrate. Finn v. Prudential-Bache Securities, Inc.,
Further, reversing one's position on arbitration has been held to constitutе an inconsistent act which will result in an express waiver of the right to arbitrate. In Gilmore v. Shearson/American Express, Inc.,
Wimpey's initiation of the lawsuit without first (or simultaneously) seeking arbitration, resulted in the waiver of any right it may have had to arbitrate the dispute. Hough; Rosen; Finn. Initially, Beverly Hills preserved any right it may have had when it brought the motion to compel. But when it subsequently withdrew its motion to compel arbitration, it expressly waived its right to arbitrate through its inconsistent action. Gilmore; Smith. Hence, at the time the trial court granted the motion to compel arbitration, both parties had waived any entitlement they may have had to resolve their dispute by arbitration.
*972 Accordingly, we reverse and remand to the trial court for further proceedings.
REVERSED and REMANDED.
PETERSON, C.J., and COBB, J., concur.
NOTES
Notes
[1] We assume, arguendo, but do not decide, that this provision applied to this dispate.
[2] See also, Hardin International Inc. v. Firepak, Inc.,
