Murphy v. Courtesy Ford, L.L.C., 3D05-1896.

• Decision Date: 06 December 2006
• Docket Number: No. 3D05-1896.,3D05-1896.
• Citation: 944 So.2d 1131
• Parties: Erin MURPHY, Appellant, v. COURTESY FORD, L.L.C., a Florida Limited Liability Corporation d/b/a "World Ford Kendall," Appellee.
• Court: Florida District Court of Appeals

944 So.2d 1131

Erin MURPHY, Appellant, v. COURTESY FORD, L.L.C., a Florida Limited Liability Corporation d/b/a "World Ford Kendall," Appellee.

No. 3D05-1896.

District Court of Appeal of Florida, Third District.

December 6, 2006.

Samuel M. Spatzer, Coral Gables; Jay M. Levy, Miami, for appellant.

Goldsmith & Atlas, and Mark Atlas, Miami, for appellees.

Before GREEN, RAMIREZ, and LAGOA, JJ.

RAMIREZ, J.

Erin Murphy, the consumer/buyer, appeals the trial court's non-final order compelling arbitration of her damages claim against the seller, Courtesy Ford, L.L.C., a Florida Limited Liability Corporation d/b/a "World Ford Kendall". She also appeals the trial court's order denying her motion for rehearing. We affirm both orders, finding that Murphy is required to arbitrate her dispute with Courtesy Ford.

Erin Murphy, who was nineteen years old at the time, came into Courtesy Ford to buy a used Ford F-150 pick-up truck. During the course of the purchase and sale transaction with Courtesy Ford's staff, Murphy knew she was signing legal documents. She did not read the sale and purchase documents. She neither asked any questions regarding the sale and purchase documents, nor raised any objection to their execution. The first time Murphy objected to any of the terms of the contract was after her car was repossessed.

The buyer's purchase order provides a warning statement printed in red ink on the front side of the document, immediately above the buyer's signature. This warning advises the buyer of the significance of the provisions printed and completed on both the front and back sides of the document. It states:

The front and back of this Order comprise the entire agreement affecting this purchase and no other agreement or understanding of any nature concerning same has been made or entered into, or will be recognized. I have read the matter printed on the back hereof and agree to it as a part of this order the same as if it were printed above my signature. I certify that I am 18 years of age, or older, and hereby acknowledge receipt of a copy of this order.

In sum, the purchase order notifies the consumer in three different paragraphs to read the reverse side of the purchase order. It also states in big black letters, "READ CONDITIONS ON REVERSE SIDE." The subject arbitration agreement clause, paragraph 12, was contained on the reverse side of the buyer's purchase order, in the same size type-face as all the other terms.

Murphy sued Courtesy Ford for damages under Florida's Deceptive and Unfair Trade Practices Act ("FDUTPA"), Florida Statute, sections 501.201, et. seq. Courtesy Ford filed a motion to stay proceedings and compel arbitration, which the trial court granted. Murphy then appealed this non-final order. She also filed in the trial court a motion for a rehearing which was heard after this Court temporarily relinquished jurisdiction of the appeal.

At the evidentiary hearing in the trial court on Murphy's motion for rehearing, Courtesy Ford established it did not actively discourage or prevent Murphy from knowing and understanding the disputed contract terms. Murphy admitted there was nothing preventing or blocking her from reading the documents; no one prevented her from reading the documents before she signed them; she did not ask for more time to review the documents or review them in more detail; she did not object to signing any of the documents; she did not ask any questions about the documents; she knew the documents were legal documents when she signed same; she simply chose not to read the documents; and the first time she objected to any of the terms of the contracts was after her car was repossessed. She also admitted that she received a copy of the buyer's purchase order at the time of purchase, but she never reviewed it. The trial court, thus, reaffirmed its initial ruling. Murphy then appealed. We now affirm, finding that the trial court properly found that the arbitration agreement was enforceable.

First, the arbitration clause in the buyer's purchase order applies to Murphy's claim under the FDUTPA. There are three elements for courts to consider in ruling on a motion to compel arbitration of a given dispute, under federal statutory provisions and Florida's arbitration code: (1) whether a valid written agreement to arbitrate exists; (2) whether an arbitrable issue exists; and (3) whether the right to arbitration was waived. Seifert v. U.S. Home Corp., 750 So.2d 633, 636 (Fla.1999).

The test for determining arbitrability of a particular claim under a broad arbitration provision is whether a "significant relationship" exists between the claim and the agreement containing the arbitration clause, regardless of the legal label attached to the dispute. Id. 637-38. See also Passerrello v. Robert L. Lipton, Inc., 690 So.2d 610 (Fla. 4th DCA 1997)(applying arbitration agreements to deceptive trade practice and fraud claims). In addition, Florida public policy favors resolving disputes through arbitration when the parties have agreed to arbitrate. Orkin Exterminating Co. v. Petsch, 872 So.2d 259, 263 (Fla. 2d DCA 2004). All doubts regarding the scope of an arbitration agreement must be resolved in favor of arbitration. Qubty v. Nagda, 817 So.2d 952, 956 (Fla. 5th DCA 2002). Furthermore, Florida case law is clear that FDUTPA claims can properly be submitted to arbitration. Orkin Exterminating Co., 872 So.2d at 261; Aztec Med. Servs., Inc. v. Burger, 792 So.2d 617, 620 (Fla. 4th DCA 2001). And finally, we review a court's ruling on a motion to compel arbitration de novo. Orkin Exterminating Co., 872 So.2d at 261.

Passerrello, 690 So.2d at 610, cited by Courtesy Ford, is directly on point with the case before us. Faced with similar facts, the Fourth District Court held in Passerrello that a used car buyer was required to arbitrate her dispute with the bank even though the arbitration clause was contained in the purchase contract and not in the finance contract. Id. at 611. See also Morse Operations, Inc. v. Sonar Radio Corp., 449 So.2d 1002 (Fla. 4th DCA 1984)(where the arbitration clause was contained in the buyer's order and not in the finance or installment sale contract).

Here, Murphy's causes of action are tied directly to the purchase of the vehicle. Because her claims involve the contractual agreement, the trial court was correct in finding there was a significant relationship between her claims and the buyer's order which contained the...