Running Cars, LLC v. Shaun Christopher Miller
CourtDistrict Court of Appeal of Florida
Date FiledFebruary 16, 2022
Docket1D21-0882
StatusPublished
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Full Opinion
FIRST DISTRICT COURT OF APPEAL
STATE OF FLORIDA
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No. 1D21-0882
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RUNNING CARS, LLC,
Appellant,
v.
SHAUN CHRISTOPHER MILLER,
Appellee.
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On appeal from the County Court for Duval County.
James A. Ruth, Judge.
February 16, 2022
LONG, J.
Running Cars, LLC, appeals an order denying its motion to
compel arbitration. We reverse and remand for further
proceedings.
Miller bought a used vehicle from Running Cars, and, as part
of the sale, executed a bill of sale and arbitration agreement.
Miller later had issues with the vehicle. Miller filed a complaint
against Running Cars alleging various breaches of warranty.
After Running Cars failed to respond to Miller’s complaint, the
clerk entered a default judgment against it. A few days later, the
owner of Running Cars filed a pro se letter with the court
expressing that he did not understand the proceedings. The letter
did not address Miller’s legal claims or set forth any cognizable
legal defense or argument. On Miller’s motion, the trial court
struck the pro se letter from the record.
Running Cars then hired an attorney to properly represent it
as an entity. Running Cars moved to set aside the default, and the
motion was granted. Five days after the order vacating default
was entered, Running Cars moved to compel arbitration. The trial
court denied it without explanation. The basis of the denial is
unclear from the record.
Running Cars now appeals the denial. It argues that the trial
court erred because the arbitration agreement is valid and
binding, Miller’s claims fall within the agreement, and that
Running Cars did not waive its right to arbitrate. Miller argues,
among other things, * that Running Cars waived its right to
arbitration when its owner submitted the pro se letter to the court
and then by moving to set aside the default judgment.
A trial court’s ruling on a motion to compel arbitration is
reviewed de novo. Murphy v. Courtesy Ford, L.L.C., 944 So. 2d
1131, 1134 (Fla. 3d DCA 2006). Matters of contract interpretation
are questions of law subject to de novo review. Jackson v.
Shakespeare Found., Inc., 108 So. 3d 587, 593 (Fla. 2013). Waiver,
however, is a question of fact reviewed for competent substantial
evidence. Marine Env’t Partners, Inc. v. Johnson, 863 So. 2d 423,
426 (Fla. 4th DCA 2003).
Running Cars did not waive its right to arbitrate. Waiver is
“the voluntary and intentional relinquishment of a known right or
conduct which implies the voluntary and intentional
relinquishment of a known right.” Raymond James Fin. Servs.,
Inc. v. Saldukas, 896 So. 2d 707, 711 (Fla. 2005). Courts resolve
all doubts regarding waiver in favor of arbitration rather than
against it. Black Knight Servicing Techs., LLC v. PennyMac Loan
Servs., LLC, 310 So. 3d 1116, 1118 (Fla. 1st DCA 2021). “The party
arguing waiver of arbitration bears a heavy burden of proof.” Id.
(quoting Eden Owners Ass’n, Inc. v. Eden III, Inc., 840 So. 2d 419,
* We reject Miller’s other legal arguments defending the trial
court order without further discussion.
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420 (Fla. 1st DCA 2003)). “A party claiming waiver of arbitration
must show: 1) knowledge of an existing right to arbitrate and 2)
active participation in litigation or other acts inconsistent with the
right.” Marine Env’t Partners, Inc., 863 So. 2d at 426. “[I]n
determining whether a party waived its right to arbitrate, the
essential question is whether, under the totality of the
circumstances, the defaulting party has acted inconsistently with
the arbitration right.” Ibis Lakes Homeowners Ass’n, Inc. v. Ibis
Isle Homeowners Ass’n, Inc., 102 So. 3d 722, 731 (Fla. 4th DCA
2012) (internal quotation marks omitted).
Miller correctly argued below that the pro se letter was a legal
nullity. In Florida, a corporation cannot represent itself and “a
pleading signed in the corporate name by one of its agents or
officials is a nullity, and must be disregarded.” Magnolias Nursing
& Convalescent Ctr. v. Dep’t of Health & Rehab. Servs., Off. of
Licensure & Certification, 428 So. 2d 256, 257 (Fla. 1st DCA 1982).
Miller cannot now argue a contrary position on appeal. Because
the pro se filing is a nullity, the only actions taken by Running
Cars were to file a notice of appearance, move for the default to be
vacated, and move to compel arbitration.
Moving to set aside the default judgment was necessary to
pursue the right to arbitrate. The default judgment impeded the
arbitration right, and when that impediment was removed, the
first action taken was to compel arbitration. This action, along
with a notice of appearance to facilitate it, cannot reasonably be
said to be inconsistent with Running Cars’ arbitration right. De
Groot v. Sheffield, 95 So. 2d 912, 916 (Fla. 1957) (defining
competent substantial evidence as evidence that “will establish a
substantial basis of fact from which the fact at issue can be
reasonably inferred.”). Considering both that all doubts regarding
waiver should be resolved in favor of arbitration and that Miller
carries the burden of proof, Running Cars’ actions did not
constitute the voluntary and intentional relinquishment of its
right to arbitration. We therefore find that the trial court erred by
denying Running Cars’ motion to compel arbitration.
REVERSED and REMANDED.
ROWE, C.J., and RAY, J., concur.
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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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Sam Y. Badawi of Badawi Law, Tampa, for Appellant.
William Folsom, Jacksonville, for Appellee.
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