Arbitration Clauses in Florida Contracts
An arbitration clause is a contract provision that requires parties to resolve disputes through arbitration rather than court litigation. In Florida, these clauses are broadly enforceable under both state and federal law, reflecting a strong public policy favoring arbitration as an efficient dispute resolution mechanism.
Enforceability
Florida courts apply a strong presumption in favor of arbitration. Under the Federal Arbitration Act and Florida Chapter 682, a court will compel arbitration if two conditions are met: a valid written agreement to arbitrate exists, and the dispute falls within the agreement's scope. The party opposing arbitration bears the burden of demonstrating grounds for non-enforcement, such as unconscionability or fraud in the inducement of the arbitration clause itself.
Drafting Considerations
Florida attorneys draft arbitration clauses to address the specific needs of the transaction. Key decisions include selecting the administering organization (AAA, JAMS, or self-administered), choosing the number of arbitrators, defining the scope of arbitrable disputes, specifying the governing law, and addressing cost allocation. A poorly drafted clause can lead to expensive satellite litigation over the clause's meaning and scope.
Related Terms
Barnes Walker Business Law
Barnes Walker drafts and enforces arbitration clauses in commercial agreements throughout Southwest Florida. Contact us for contract drafting guidance.
Reviewed by the attorneys at Barnes Walker, Goethe, Shea & Robinson, PLLC