Mandatory Binding Arbitration in Florida
A mandatory binding arbitration clause requires Florida contracting parties to resolve all covered disputes through arbitration, waiving their right to a jury trial and court litigation. The arbitrator's award is final and enforceable as a court judgment with very limited grounds for judicial review.
Finality and Limited Review
The defining feature of mandatory binding arbitration is finality. Under Florida Statute Section 682.13, a court can vacate an award only for corruption, fraud, arbitrator misconduct, or the arbitrator exceeding the scope of authority. Errors of law or fact by the arbitrator are generally not grounds for vacatur. This finality provides certainty but also means that a party who receives an unfavorable award has very limited recourse.
Enforceability Challenges
Florida parties seeking to avoid mandatory arbitration must demonstrate that the clause is unenforceable on contract law grounds. Unconscionability is the most common challenge, requiring the objecting party to show both procedural unconscionability (unfair bargaining process) and substantive unconscionability (unreasonably one-sided terms). Florida courts evaluate these factors on a sliding scale, where extreme deficiency in one can compensate for a lesser showing of the other.
Related Terms
Barnes Walker Litigation
Barnes Walker represents clients in mandatory arbitration proceedings and arbitration clause enforcement matters. Contact us for dispute resolution guidance.
Reviewed by the attorneys at Barnes Walker, Goethe, Shea & Robinson, PLLC