The Village at Dolphin Commerce Center, LLC v. Construction Service Solutions, LLC, 2014 WL 2116361 (3D13-1499, May 21, 2014)

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Court defers to arbitration panel’s implied finding that the contract was enforceable even though illegal because contractor was not licensed at the time of contracting. 

An unlicensed contractor recorded a claim of lien against an owner and filed a demand for arbitration pursuant to the contract.  Owner answered and raised the defense that the contract was unenforceable because the contractor was unlicensed.  Owner also filed a state court declaratory judgment action challenging the claim of lien on the enforceability issue, but that action was stayed because of the pending arbitration.  Arbitration panel found in favor of contractor in an order that did not directly address the enforceability issue and the trial court affirmed the award, entered judgment for the amount awarded plus attorneys’ fees under section 713.29, and enforced the lien.

The Third District Court of Appeal affirmed in all respects.  The court found that “determination of the legality of the contract was a decision for the arbitrators.”  This is based in part on the court’s deference to the party’s agreement to arbitrate this issue and in part on the decision of the United States Supreme Court in Buckeye Check Cashing Inc. v. Cardegna, 546 U.S. 440 (2006)(“Unless the challenge is to the arbitration clause itself, the issue of the contract’s validity is considered by the arbitrator in the first   instance.”).

(From The Florida Bar Construction Law Committee)

Trenton H. Cotney
Florida Bar Certified Construction Lawyer
Trent Cotney, P.A.
1211 N Franklin St
Tampa, FL 33602



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