Validity of Arbitration Agreement Based Upon Harmonious Meaning of its Wording

Nursing  home  admission  agreement  contained  arbitration  agreement  that  stated,  "If  not cancelled,  this  Agreement  shall  be  binding  on  the  Resident  for  this  and  all  of  the Resident's other admissions to the Facility without any need for further renewal."  Estate alleged negligence against the nursing home and sought to avoid arbitrating the dispute.  Accordingly,  Estate  opposed  Facility's  Motion  to  Compel  Arbitration  which  the  trial judge  denied.    On  appeal,  the  Court  reversed  the  denial,  upholding  the  validity  of  the arbitration  agreement  after  applying  principles  of  contract  interpretation  to  the  specific arbitration agreement:   

1.  Arbitration  agreements  are  contractual  in  nature  and  their  construction remains  a  matter  of  contract  interpretation.    Seifert  v  U.S.Home  Corp,  750  So.  2d  633 (Fla. 1999);   

2.  All provisions of arbitration agreement must be interpreted in such a way to prevent rendering them meaningless.  Kel Homes, LLC v. Burris, 933 So. 2d 699 (Fla. 2d DCA 2006);  Ibis Lake Homeowners Ass'n v. Ibis Isle Homeowners Ass'n, 102 So. 3d 722 (Fla. 4th DCA 2012);   

3.  All  provisions  of  arbitration  agreement  must  be  interpreted  "to  give harmonious effect to all the terms".   Spring Lake NC, LLC v. Figueroa, 104 So. 3d 1211 (Fla. 2d DCA 2012).  Contrast  this  outcome  with  a  similar  nursing  home  arbitration  provision  in  LTCSP

From the Construction Transactions Subcommittee Report

Trenton H. Cotney

Florida Bar Certified Construction Lawyer

Trent Cotney, P.A.

407 N. Howard Avenue

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Tampa, FL 33606

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