Arbitration & Mediation

Once Motion to Compel is Granted, Failure to Arbitrate May Mean Defendant is Entitled to Fees As a Prevailing Party

By Christopher B. Hopkins, Esq.

Lawyers need to be counsel their clients carefully after a motion to compel arbitration is granted. Depending upon the statutory claims, the failure to proceed with arbitration may lead the defendant to be deemed the prevailing party, entitled to attorney's fees.

The Fourth District recently addressed this issue in L. Scott Frazier et al. v. Andre Dreyfoos, the Salem Law Group, P.A. et al. (Ciklin, Gross & Warner).

In that case, a group of buyers thought they were purchasing land and bungalows in Costa Rica. Apparently the land was owned by the government. When they filed suit in Palm Beach County, the trial court compelled them to arbitration. The sales contract required arbitration before the Costa Rican-American Chamber of Commerce, located in Costa Rica. The buyers opted to drop the issue due to cost to pursue.

But the sellers didn't let up. Since the buyers had sued under Chapter 517, Florida Statutes, there was a prevailing party attorney fee provision. Relying upon a prior case, the Panel held that the seller was the prevailing party when the case was dismissed, regardless of the fact that the merits were not reached/claim was abandoned.

Full post as published by Florida Arbitration Law on July 01, 2009 (boomark / email).