CORAL 97 ASSOCIATES, LTD., a Florida Limited Partnership, Appellant,
v.
CHINO ELECTRIC, INC., a Florida Corporation, Appellee.
District Court of Appeal of Florida, Third District.
*70 Drew S. Sheridan, Miami, for appellant.
Leiby & Elder and Kathleen E. Bente, Miami, for appellee.
Before BASKIN, DANIEL S. PEARSON and FERGUSON, JJ.
BASKIN, Judge.
Coral 97 Associates, Ltd., [Coral] appeals thе trial court's denial of its motion to dismiss the complaint or to stay action pending arbitration on the ground that the trial court erred in ruling that Coral waived its right to arbitration by taking an action inconsistent with its rights under the contract. We agree with the trial court and affirm the Order on Motion to Dismiss or Stay Action Pending Arbitration.
Coral and appellee Chino Electric, Inc. [Chinо] entered into a contract whereby Chino would make certain improvements to real property owned by Coral. The parties agreed to arbitrate disputes. Subsequеntly, however, without requesting arbitration, Chino instituted an action against Coral for foreclosure of a mechanic's lien and breach of contract. In response, Coral filed a motion to dismiss the complaint, claiming that Chino had failed to state a cause of action and had not complied with contractual provisions requiring arbitration prior to the filing of a lawsuit. With its motion to dismiss, Coral filed a counterclaim for breach of contract. The counterclaim made no reference to Chino's failure to demand arbitration. Prior to the hearing on the motion to dismiss, Coral also filed a notice of taking Chino's deposition.
Following a hearing, the trial court dismissed one count of the complaint, granted Chino leave to amend, and deferred ruling on the arbitration issue. Thereafter, the trial court denied Coral's motion to dismiss on the ground that Coral waived its right to demand arbitratiоn by taking the inconsistent action of filing a counterclaim. Coral appealed рursuant to Florida Rule of Appellate Procedure 9.130(a)(3)(C)(v).
Although courts favor arbitration, U.S. Fire Ins. Co. v. Franko,
Citing Genstar Southern Development Corp. v. Troup Bros., Inc.,
Furthermore, Coral was not required to file its compulsory counterclaim when it filed its motion to dismiss. The filing of a timely motion to dismiss tolls the time for answering until the court rules on the motion. Atlantic Coast Line R. Co. v. Lake County Citrus Sales, Inc.,
Affirmed.
FERGUSON, J., concurs.
DANIEL S. PEARSON, J., concurs in result only.
