Are you considering filing a lawsuit for punitive damages in Palm Beach? Are you involved in a commercial litigation over a contract dispute in Miami? You may want to hire a commercial litigation law firm to read over you contract. If you signed a valid arbitration clause, you may not be able to bring your lawsuit in court. Read this recent case from Florida’s 4th District Court of Appeal that explains how a court determines whether your arbitration clause was valid.
What is an arbitration clause?
- An arbitration clause is an agreement to handle and resolve a legal dispute through an arbitration process. That means, instead of bringing your limited liability contract dispute in court, you are required to resolve your issue in front of an arbitrator.
- Did you sign a contract in Fort Lauderdale with an arbitration clause?
- Even though the dispute is handled outside of court, the Broward court will still enforce whatever the arbitrator decides.
One possible defense to arbitration is duress:
- No Boca Raton court will enforce an arbitration clause if the agreement was made under duress.
- Duress is a condition of mind. Where you pressured into signing your partnershipcontract for a new start-up company in Tampa?
- To prove duress you must show: (1) the act was not a free choice, and (2) this condition of mind was caused by the other person’s conduct.
- If your company lawyer is able to prove that you were under duress when you signed the contract agreement in Orlando, then the contract, including the arbitration clause, may be set aside.
In AMS STAFF LEASING, INC., v. ROBERT F. TAYLOR and DIAMOND K RESOURCES, LLC,from Florida’s 4th District Court of Appeal, Robert Taylor signed a contract with an employee leasing company that contained an arbitration agreement. Although he stated that he felt rushed to sign the agreement, he was unable to prove that he signed it under duress from the leasing company. So, the arbitration clause was valid. To read a free online copy of this case opinion and learn more about arbitration clause and possible defenses, click here:
http://www.4dca.org/opinions/March%202015/03-04-15/4D14-1387.revop.pdf.