Andrew J. Russell v. Hydroprocessing Associates, LLC; Breathing Systems Inc.; And Peter Thew
CourtDistrict Court of Appeal of Florida
Date FiledJune 10, 2021
Docket1D20-1387
StatusPublished
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Full Opinion
FIRST DISTRICT COURT OF APPEAL
STATE OF FLORIDA
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No. 1D20-1387
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ANDREW J. RUSSELL,
Appellant,
v.
HYDROPROCESSING ASSOCIATES,
LLC; BREATHING SYSTEMS, INC.;
and PETER THEW,
Appellees.
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On appeal from the Circuit Court for Escambia County.
Gary L. Bergosh, Judge.
June 10, 2021
B.L. THOMAS, J.
Appellant challenges the trial court’s order granting
Appellees’ motion to compel arbitration. We reverse the portion of
the order requiring Appellant’s claims against Breathing Systems,
Inc. to be determined through arbitration.
Appellate courts review a trial court’s determination of
whether a valid written agreement to arbitrate exists de novo.
HHH Motors, LLP v. Holt, 152 So. 3d 745, 747 (Fla. 1st DCA 2014).
The Florida Arbitration Code controls the proceedings to compel
and stay arbitration and states, in relevant part:
(2) On motion of a person alleging that an arbitration
proceeding has been initiated or threatened but that
there is no agreement to arbitrate, the court shall proceed
summarily to decide the issue. If the court finds that
there is an enforceable agreement to arbitrate, it shall
order the parties to arbitrate.
(3) If the court finds that there is no enforceable
agreement to arbitrate, it may not order the parties to
arbitrate pursuant to subsection (1) or subsection (2).
§ 682.03, Fla. Stat. (2020). “Absent a valid written agreement to
arbitrate, no party may be forced to submit to arbitration.” Holt,
152 So. 3d at 747.
Here, Appellant executed two contemporaneous employment
agreements, one with Breathing Systems, Inc. and the other with
Hydroprocessing Associates, LLC. The employment agreement
with Hydroprocessing Associates, LLC included an arbitration
provision. However, the employment agreement with Breathing
Systems, Inc. did not include an arbitration provision and included
an integration clause stating that the agreement was the entire
agreement between the parties and it superseded all prior
agreements.
Evidentiary hearings were held and the focus of the argument
during the hearings was whether Appellant had signed the
Hydroprocessing Associates, LLC employment agreement. As a
result, the trial court’s written order failed to address whether
there was a valid arbitration agreement between Appellant and
Breathing Systems, Inc. and how the Hydroprocessing Associates,
LLC agreement affected the agreement. At the conclusion of the
second evidentiary hearing, the trial court stated that it was going
to “send [this issue] to the arbitrator and let him look at it.” By
passing this issue to the arbitrator, the trial court determined that
it did not have jurisdiction to consider whether there was a valid
arbitration agreement between Appellant and Breathing Systems,
Inc. The trial court’s ruling that it lacked jurisdiction to determine
this issue was incorrect.
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It is the trial court’s responsibility to determine whether a
valid arbitration agreement exists, especially where the
arbitration clause itself is being challenged. See Henry Schein, Inc.
v. Archer and White Sales, Inc., 139 S. Ct. 524, 530 (2019); Schotts
v. OP Winter Haven, Inc., 86 So. 3d 456, 465 (Fla. 2011); CEFCO
v. Odom, 278 So. 3d 347, 351 (Fla. 1st DCA 2019); see also Buckeye
Check Cashing, Inc. v. Cardegna, 546 U.S. 440, 445 (2006). Here,
Appellant challenged the existence of an arbitration agreement
between himself and Breathing Systems, Inc., which related only
to the arbitration provision of the agreement and not the
agreement in general. As a result, it was the trial court’s
responsibility to determine whether a valid arbitration agreement
existed.
This responsibility was not altered by the conflicting
arbitration provision contained in the employment agreement
submitted by Hydroprocessing Associates, LLC, because typically
where multiple documents containing conflicting arbitration
provisions are submitted to the court, the court will determine
whether a valid arbitration agreement exists. See Holt, 152 So. 3d
at 748 (finding no legal error in the trial court’s conclusion that a
retail installment sales contract and its merger clause operated to
negate an arbitration clause in a separate retail purchase
agreement); see also Duval Motors Co. v. Rogers, 73 So. 3d 261,
268–69 (Fla. 1st DCA 2011); Careplus Health Plans, Inc. v.
Interamerican Med. Ctr. Grp., LLC, 124 So. 3d 968, 972 (Fla. 3d
DCA 2013). As a result, the trial court erred by failing to determine
whether a valid arbitration agreement existed between Appellant
and Breathing Systems, Inc. before ordering their claims be
determined through binding arbitration.
We reverse and remand for the trial court to determine
whether a binding arbitration agreement exists between Appellant
and Breathing Systems, Inc.
REVERSED and REMANDED.
TANENBAUM, J., concurs; MAKAR, J., concurs in result with
opinion.
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Not final until disposition of any timely and
authorized motion under Fla. R. App. P. 9.330 or
9.331.
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MAKAR, J., concurring in result.
At issue is a non-final order that adjudicated arbitration
rights in a dispute involving an employee who entered agreements
with two different, but related, employers. The appeal was
docketed in May 2020. The parties’ dispute has now been settled
and the parties filed a stipulation on March 29, 2021, requesting
that this appeal be dismissed, essentially rendering moot the relief
sought in this Court.
At this juncture, the parties have settled their underlying
dispute, allocated costs and fees, and directed that the appellate
clerk close the case, a request made prior to release of a written
opinion on the merits. Discretion ordinarily ought to be exercised
in accord with the parties’ wishes unless the legal issue presented
is one of great public importance or some other important interest
is served by publishing an opinion. Holly v. Auld, 450 So. 2d 217,
218 n.1 (Fla. 1984) (“It is well settled that mootness does not
destroy an appellate court’s jurisdiction, however, when the
questions raised are of great public importance or are likely to
recur.”). An amorphously fine line is drawn between important but
moot cases that deserve judicial attention and those of lesser
importance that do not; this one treads that line but I respect my
panel colleagues’ decision that a published opinion on the issue
presented will be of general assistance to the bar. Some question
whether judicial authority allows for this result, see, e.g., Pino v.
Bank of N.Y., 76 So. 3d 927, 931 (Fla. 2011) (Canady, C.J.,
dissenting), but it assuredly does in our supreme and district
courts, including this Court. See, e.g., Fla. Gas Transmission Co.,
LLC v. City of Tallahassee, 230 So. 3d 912, 914 (Fla. 1st DCA 2017)
(noting that during the pendency of an appellate proceeding “the
parties requested to dismiss their joint petition” pursuant to Rule
4
9.350 but that “nothing in the rule . . . requires this Court to
dismiss the cause of action” (citing Pino, 76 So. 3d at 929)).
The parties, of course, are not bound by the appellate opinion
unless for some odd reason their settlement says so. For that
reason, our panel ought to consider a motion to vacate the opinion
if a movant makes the case that the opinion works some advantage
or disadvantage to any of the parties, which seems unlikely but is
a possibility given the parties’ likely expectations in entering a
settlement was that their stipulation of dismissal would conclude
the matter.
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Robert S. Rushing and Travis M. Morock of Carver, Darden,
Koretzky, Tessier, Finn, Blossman & Areaux, LLC, Pensacola, for
Appellant.
Jeremiah J. Talbott and Mark A. Belcher of Law Office of Jeremiah
J. Talbott, P.A., Pensacola, for Appellees.
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