Raymond James Financial Services, Inc. (Raymond James), appeals the trial court’s final declaratory judgment which found that the arbitration claims of Barbara J. Phillips, as trustee of the Barbara J. Phillips Trust and as a guardian to Walter R. Phillips; Jennifer L. Phillips, individually and as trustee of the Barbara J. Phillips Flite Trust; and Margaret K. Camp (collectively, Account Holders) were not
I. Facts and Procedural History
The Account Holders executed client agreements with Raymond James for investment purрoses. Pursuant to the provisions of the client agreements, the Account Holders were required to submit any disputes with Raymond James to the National Association of Securities Dealers, Inc. (NASD), for arbitration.
(a) No dispute, clаim, or controversy shall be eligible for submission to arbitration under this Code where six (6) years have elapsed from the occurrence or event giving rise to the ... claim.
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(b) This Rule shall not extend applicable statutes of limitations; nor shall the six-year time limit ... apply to any claim that is directed to arbitration by the court.
The client agreement also provided:
(d) Nothing in this agreement shall be deemed to limit or waive thе application of any relevant state or federal statute of limitation, repose or other time bar. Any claim made by either party to this agreement which is time barred for any reason shall not be eligible for arbitration. The determination of whether any such claim was timely filed shall be by a court having jurisdiction, upon application by either party.
In Novеmber 2005 the Account Holders filed arbitration claims with NASD. The Account Holders’ grievances may briefly be summarized as claims of negligence; misconduct, including breaches of fiduciary duty; and state and federal securities violations. In response to the Account Holders’ claims, Raymond James filed a motion to dismiss, asserting that the Account Holders’ claims were barred by the limitations periods in chapter 95, Florida Statutes (2005). The Account Holders then invoked the provision in the arbitration agreement which stated that timeliness issues would be decided by the court, and they filed an action in the circuit court of Collier County seeking a declaratory judgment. The Account Holders argued that Florida’s statutes of limitations do not apply to arbitration proceedings. The circuit court agreed and issued a final declaratory judgment stating that Florida’s statutes of limitations were not applicable to the Account Holders’ arbitration claims as a matter of law. The court reasoned that the Florida Supreme Court’s decision in Miele v. Prudential-Bache Securities, Inc.,
II. Analysis
“A legal issue surrounding a statute of limitations question is an issue of law subject to de novo review.” Hamilton v. Tanner,
The language of the contract at issue in this ease does not expressly state that Florida’s statutes of limitations apply to the arbitration claims. Instead, the language states that the contract will not “limit or waive the application of any relevant state or federal statute of limitation.” The Account Holders argue, and we agree, that this phrase does not affirmatively incorporate Florida’s statutes of limitations into the agreement. The phrase indicates that Raymond James did not intend to waive any relevant stаtute of limitations defenses. Thus, we must determine whether Florida’s statutes of limitations are relevant to arbitration claims. We are not alone in making this determination. See Broom v. Morgan Stanley DW Inc.,
“As with any case of statutory construction, we begin with the ‘actual language used in the statute.’ ” Heart of Adoptions, Inc. v. J.A.,
A. Section 95.011, Florida Statutes (2005)
Section 95.011 provides, “A civil action or proceeding, called ‘action’ in this chapter, ... shall be barred unless begun within the time prescribed in this chapter....” (Emphasis added.) There is nothing within chapter 95 which defines the terms “civil action” or “proceeding.” Thus, we turn to the dictionary definition of these terms. Black’s Law Dictionary defines “civil action” as “[a] civil suit stating a legal cause of action and seeking only a legal remedy.” Black’s Law Dictionary, 31 (8th ed. 2004). It defines “proceeding” as “[a]ny procedural means for seeking redress from a tribunal or agency,” “[t]he business conducted by a court or other official body,” and “[t]he regular and orderly progression of a lawsuit, including all acts and events between the time of commencement and the entry of judgment.” Id. at 1241. Because neither the actual language of the statute nor the dictiоnary definition include the term arbitration, the meaning of the words “civil action” or “proceeding” do not convey a clear and definite meaning, and we must resort to the principles of statutory construction.
B. Case Law
Because the phrase “civil action” appears prior to the word “proceeding,” we address “civil action” first. Here, the circuit court based its ruling on Miele. Although the Miele opinion is not a statute of limitations case, the lаnguage of the case supports the circuit court’s finding that arbitrations are not “actions.” The Miele court considered whether section 768.73, Florida Statutes (1991), which addressed limitations on punitive damage awards, applied to arbitration proceedings. Section 768.73 provided, in pertinent part, that it applied to “any civil action” that fell within certain categоries of tort actions. Finding “that the plain meaning of ‘civil action’ must be derived from the context in which the language lies,” the court held that the term “civil action,” as used in the statute, was limited to proceedings “filed in a court” and did not include arbitration. Id. at 472. The court concluded that arbitration is “an alternative to the court system.” Id.
Although the Florida Supreme Court has nevеr expressly receded from Miele, at least one Florida court has attempted to limit its scope. Like Miele, Martin Day-tona Corp. v. Strickland Construction Services,
The court then addressed Martin Dayto-na’s argument that because Florida Rule of Civil Procedure 1.010 provides that the rules of civil procedure “apply to all actions of a civil nature,” rule 1.525 was inapplicable to the arbitration. Id. at 1224. The court concluded that the term “actions of a civil nature” included motions for fees and costs that are based on awards emanating from arbitration but which are filed in circuit court. Id. at 1225. Though acknowledging the holding in Miele, the Fifth District found that the legislature hаd “a different view from that
We have no quarrel with the outcome of Martin Daytona. As noted, the action began as a civil lawsuit in circuit court, a matter clearly within the scope of rule 1.010. It was only after the action had been filed that it was referrеd, pursuant to the parties’ contract, to an arbitrator. Moreover, such referral did not put an end to the action because it had to be confirmed by the circuit court, and the circuit court alone could determine entitlement to fees and the amount thereof.
We cannot agree, however, that the enactment of section 768.737 represented a complete repudiation of Miele and certainly not a legislative directive that all arbi-trations are in fact “civil actions.” Section 768.73(2) was part of the 1986 Tort Reform and Insurance Act and reflected a philosophy that punitive damage awards can represent a windfall for the successful plaintiff even if such awards are otherwise apрropriate to deter egregious misconduct on the part of the party being sued. Gordon v. State,
We acknowledge that the trial court incorrectly relied on the Miele decision when it stated that Miele determined arbitra-tions are not “proceedings.” There is nothing in Miele or any decisions subsequent to Miele which deals with the interpretation of the term “proceeding.” However, we do not find the wоrd “proceeding” indicative of a legislative intent to apply Florida’s statutes of limitations to arbitration; thus, the trial court’s decision was proper.
The phrase used in section 95.011 is “civil action or proceeding.” We find this phrase to mean a court proceeding and not arbitration. If the legislature intended for the term “proceeding” to apply to аrbitration, it could have defined “proceeding” to include an arbitration or it could have expressly included the word arbitration within section 95.011. Raymond James’ position that the phrase “or proceeding” means “arbitration” is a strained reading of the statute. This is especially true in light of the fact that the Florida Arbitration Code was enacted in 1957, which is prior to the enactment of section 95.011. Thus, the legislature was aware of arbitration and could have ex
Absent a more specific reference to arbi-trations in section 95.011, and without a clear indication of legislative intent otherwise or case law which interprets this issue, it is too much of a stretch to conclude thаt the legislature was motivated by a desire to extend our state’s limitations periods to such “proceedings.” See Holly,
Raymond James also cites O’Keefe Architects, Inc. v. CED Construction Partners, Ltd.,
By contrast, the client agreement between Raymond James and the Account Holders states that “the determination of whether any ... claim was timely filed shall be by a court having jurisdiction, upon application of either party.”
III. Conclusion
In sum, Raymond James did not expressly include the Florida statutes of limitations in the contract. Since the contract is construed against the drafter and since the language of the statute does not state that it applies to arbitration, we hold that Florida’s statutes of limitations do not apply to arbitrations where the arbitration agreement does not expressly provide for their applicаtion. Thus, the trial court correctly determined that Florida’s statutes of limitation do not bar the Account Holders’ claims. However, pursuant to Florida Rule of Appellate Procedure 9.030(a)(2)(A)(v), we certify to the Florida Supreme Court the following question, which we believe to be of great public importance:
DOES SECTION 95.011, FLORIDA STATUTES, APPLY TO ARBITRATION WHEN THE PARTIES HAVE NOT EXPRESSLY INCLUDED A PROVISION IN THEIR ARBITRATION AGREEMENT STATING THAT IT IS APPLICABLE?
Affirmed.
Notes
. In July 2007 NASD was consolidated with the member regulation, enforсement, and arbitration functions of the New York Stock Exchange and the Financial Industry Regulatory Authority (FINRA) was created. Raymond James is a member of FINRA.
. The appropriateness of the chosen forum, the circuit court of Collier County, is not contested.
. Washington is among those jurisdictions that have held "a catch-all statute of limitations [does] not apply to arbitrations.” Broom,
