Tropical Ford, Inc. v. Major, 5D03-3000.
Decision Date | 17 September 2004 |
Docket Number | No. 5D03-3000.,5D03-3000. |
Citation | 882 So.2d 476 |
Parties | TROPICAL FORD, INC., Appellant, v. Mona MAJOR, Appellee. |
Court | Florida District Court of Appeals |
Gregory M. Wilson, Orlando, for Appellant.
Steven M. Fahlgren of the Law Offices of Steven M. Fahlgren, P.A., Orlando, for Appellee.
Tropical Ford appeals the trial court's non-final order denying its motion to compel arbitration on appellee Mona Major's tort claims. Concluding that the trial court erred in denying said motion, we reverse.1
Mona Major filed a complaint against Tropical Ford alleging claims of fraud, negligent misrepresentation, and a violation of the Magnuson-Moss Warranty Act. See 15 U.S.C. § 2301 et seq. The complaint alleged that Major had purchased a car from Tropical Ford and had been assured that the car was in good condition and had no problems but that Major later learned that the car had been in a major accident and had sustained damages which significantly reduced its value.
Tropical Ford responded to the complaint by filing a motion to stay and/or abate, requesting that the case be stayed until the parties could participate in mediation and, if such mediation failed, binding arbitration as set forth in the dispute resolution agreement executed by the parties. Said agreement provided that any and all claims, disputes, or issues involving the customer and the dealer must be submitted to mandatory mediation, and if mediation should fail, mandatory arbitration. Major's signature is at the bottom of the dispute resolution agreement.
Major filed a response to the motion claiming that the dispute resolution agreement was both procedurally and substantially unconscionable and thus unenforceable, and that the arbitration agreement did not apply to her Magnuson-Moss Warranty claims. A hearing was held on the motion. After considering the arguments of counsel and the supporting memoranda of law, the trial court denied Tropical Ford's motion to compel arbitration, stating as follows:
Tropical Ford timely appealed this ruling, arguing that Major's tort claims should have been ordered to proceed to arbitration. We agree.
An appellate court reviews de novo a trial court's ruling on a motion to compel arbitration. Avid Engineering, Inc. v. Orlando Marketplace Ltd., 809 So.2d 1 (Fla. 5th DCA 2001). The determination of whether an issue is subject to arbitration is a matter of contract interpretation, and appellate review on that issue is also de novo. Ocwen Federal Bank FSB v. LVWD, Ltd., 766 So.2d 248 (Fla. 4th DCA 2000)
.
In Seifert v. U.S. Home Corp., 750 So.2d 633 (Fla.1999), the Florida supreme court explained as follows:
Under both federal statutory provisions and Florida's arbitration code, there are three elements for courts to consider in ruling on a motion to compel arbitration of a given dispute: (1) whether a valid written agreement to arbitrate exists; (2) whether an arbitrable issue exists; and (3) whether the right to arbitration was waived. See Terminix Int'l Co. L.P. v. Ponzio, 693 So.2d 104, 106 (Fla. 5th DCA 1997)
.
Here, there is a written dispute resolution agreement signed by the parties.2 The agreement clearly states that all claims are covered by the agreement and there is no argument that either party had waived its right to arbitration. Since all three of the elements that the trial court was required to consider are present in this case, Tropical Ford was entitled to receive an order compelling arbitration unless Major established that the arbitration clause was unenforceable.
In an effort to establish that the arbitration clause was unenforceable, Major first argued that the dispute resolution section of the sales contract was unconscionable.
In order to invalidate an arbitration clause as unconscionable, the court must find that the clause is both procedurally and substantively unconscionable. Chapman v. King Motor Co. of S. Fla., 833 So.2d 820 (Fla. 4th DCA 2002). Procedural unconscionability relates to the manner in which the contract was entered into and involves such issues as the relative bargaining power of the parties and their ability to know and understand the disputed contract terms....
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