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Maguire v. King12/16/2005
tort claims are nonsensical when divorced from the contractual obligation to deliver approximately two acres of drainage rights. Nor is this a case in which the tort claims should be excluded from arbitration because the arbitration provision was narrow in scope or present only in a separate agreement. See Coggin Auto. Corp. v. Reed, 750 So. 2d 744, 746 (Fla. 5th DCA 2000) (holding that a dispute concerning an insurance policy with one party was not arbitrable under the arbitration provision in a vehicle purchase contract with another party); Grosseibl v. J. Chris Howard Builders, Inc., 739 So. 2d 1255, 1256 (Fla. 5th DCA 1999) (ruling that a claim against the builder regarding a home sale and purchase, and undisclosed prior existence of a swimming pool, was not covered in an arbitration agreement addressing only claims "arising out of or relating to this warranty," where the warranty expressly excluded coverage for issues addressed by the plaintiff's complaint); Miller v. Roberts, 682 So. 2d 691, 692 (Fla. 5th DCA 1996) (concerning an arbitration provision that covered only disputes concerning the terms of the underlying agreement); Fla. Dep't of Ins. v. World Re, Inc., 615 So. 2d 267, 268 (Fla. 5th DCA 1993) (holding that an arbitration clause governing disputes "as to the interpretation of this certificate" did not encompass claims for fraud in the inducement); Ocwen Fed. Bank FSB v. LVWD, Ltd., 766 So. 2d 248, 249 (Fla. 4th DCA 2000) (addressing an arbitration clause that provided only disputes concerning one paragraph of the agreement would be settled by arbitration, and that no other issues or disputes between the parties would be settled by arbitration).
Furthermore, a claim of fraud in the inducement does not preclude enforcement of the arbitration provision. Vacation Beach, Inc. v. Charles Boyd Constr., Inc., 906 So. 2d 374, 377-78 (Fla. 5th DCA 2005) (citing Qubty, 817 So. 2d at 952). It is well settled that where the agreement is alleged to have been fraudulently induced, rather than the arbitration agreement itself, the matter is to be resolved by arbitration. Great W. Fin. Sec. Corp. v. Grandison, 701 So. 2d 1202, 1203 (Fla. 5th DCA 1997); Simpson v. Cohen, 812 So. 2d 588, 590 (Fla. 4th DCA 2002); Passerrello v. Robert L. Lipton, Inc., 690 So. 2d 610, 611 (Fla. 4th DCA 1997). This remains so even where the alleged fraudulent misrepresentation preceded the purchase at issue. Grandison, 701 So. 2d at 1203. The provision in this case references " ll controversies, claims, and other matters in question arising out of or relating to this transaction or this ontract." Such a broad provision often requires arbitration of tort claims, including issues of fraud. Stacy David, 845 So. 2d at 306 (citing Simpson, 812 So. 2d 588, and Micronair, Inc. v. City of Winter Haven, 800 So. 2d 622 (Fla. 2d DCA 2001)).
King skips the language referencing " ll controversies, claims, and other matters" to highlight the provision that the arbitrator may not alter contract terms or award extracontractual remedies. King claims that this restriction shows a "clear and unambiguous expression of intent to exclude claims such as . . . fraud in the inducement, fraud, and negligent misrepresentation, from the scope of matters arbitrable" between King and St. Marks. We disagree. The language is, at best, ambiguous, and ambiguities regarding the scope of an arbitration agreement must be resolved in favor of arbitration. Qubty, 817 So. 2d at 956. Furthermore, accepting King's characterization of the provision would require ignoring the reasonable meaning of the "all claims or controversies" language, rendering it of no effect. See Orkin Exterminating, 872 So. 2d at 263. Viewed more accurately, these terms merely delineate th
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