Arbitration & Mediation

Arbitration Clause in Discrete Section of Contract Doesn't Apply to All Disputes

By Christopher B. Hopkins, Esq.

If a contract dispute includes an arbitration clause under a provision entitled, "Procedure for Indemnity Claims," should first party claims be arbitrated?

No, according to the Second District in Raymond and Michael Tubbs v. Lisa and Richard Hudec(Fulmer, Davis, and Wallace). In this first party contract dispute, section 6.4 of the contract was entitled, "Procedures for Indemnity Claims," and was the only place where the contract had an arbitration clause. Again, the subject case was a first party, not indemnity, claim.

The Panel interpreted the contract as requiring arbitration only when there was an indemnity claim. Little case law was cited; this was a custom-tailored question of interpreting rights under the contract between the parties.

Full post as published by Florida Arbitration Law on June 04, 2009 (boomark / email).