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Maguire v. King12/16/2005
Defendants Bruce A. Maguire ("Maguire") and the St. Marks Development Authority, Inc. ("St. Marks") timely appeal a non-final order that granted their motion to compel arbitration as to the first two counts of a complaint, but denied their motion as to its last three counts. We have jurisdiction and reverse.
In February 2003, Plaintiff William C. King ("King") and St. Marks entered into a contract in which King agreed to purchase 3.49 acres of property in St. Johns County. King negotiated the contract with Maguire, an officer and shareholder of St. Marks. Maguire represented that the transaction would include two acres of permitted drainage rights. On 31 May 2003, the parties reduced their drainage rights agreement to writing and executed an addendum to the agreement, which provided that St. Marks would "release all drainage system capacities relative to the subject property, approximately 2 acres." The closing took place in June 2004.
After closing, King discovered that Maguire and St. Marks previously transferred an acre of the drainage rights during the sale of a different parcel, leaving King with approximately one acre of drainage rights. King alleged a loss in property value and other damages because half of the upland portion of the property was undevelopable.
King filed a five-count complaint in circuit court in April 2004. The factual allegations in the complaint were realleged in each count. Counts One and Two requested specific performance and damages for breach of contract because St. Marks failed to provide King with two acres of drainage rights. Count Three, for fraud in the inducement, alleged that Maguire, as St. Marks's agent and authorized representative, made a false statement of material fact to King regarding the existence of and St. Marks's intent to convey two acres of permitted drainage rights. Count Four, for fraud, alleged that Maguire, for his own benefit as a shareholder of St. Marks, made a false statement of material fact to King regarding the existence of and St. Marks's intent to convey two acres of permitted drainage rights. Count Five, for negligent misrepresentation, alleged that Maguire, for himself and on behalf of St. Marks, made a false statement of material fact to King regarding the existence of and St. Marks's intent to convey two acres of permitted drainage rights.
Maguire and St. Marks moved to dismiss and compel arbitration in accordance with the contract's arbitration provision. The court granted the motion with respect to the first two counts, but denied it for the remaining counts, holding that "tort claims . . . are not subject to arbitration under the contract, and the arbitrator has no jurisdiction to arbitrate those claims."
The contract's dispute resolution provision provided:
14. DISPUTE RESOLUTION: This Contract will be construed under Florida law. All controversies, claims, and other matters in question arising out of or relating to this transaction or this Contract or its breach will be settled as follows:
(a) Disputes concerning entitlement to deposits made or agreed to be made: . . .
(b) All other disputes: Buyer and Seller will have 30 days from the date a dispute arises between them to attempt to resolve the matter through mediation, failing which the parties will resolve the dispute through neutral binding arbitration in the county where the Property is located. The arbitrator may not alter the Contract terms or award any remedy not provided for in this Contract. The award will be based on the greater weight of the evidence and will state findings of fact and the contractual authority on which it is based. If the parties agree to use discovery, it
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