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A party who files suit in court, files a motion for summary judgment, tells the trial court that she has waived the right to arbitrate, and litigates the action for over two and a half years has waived the right to arbitrate, a state court in Florida held.
In Inverrary Gardens Condominium I Association, Inc. v. Spender, No. 4D05-3810, 2006 WL 3018110 (Fla. Dist. Ct. App. Oct. 25, 2006), Spender brought a motion to compel arbitration of a breach of contract claim that she brought against Inverrary, her former employer.
When Spender initially brought the claim in court, the trial court granted partial summary judgment in her favor. Inverrary appealed that decision, which was reversed and remanded, and Spender then sought to compel arbitration of the claim pursuant to an arbitration clause in her employment contract.
Inverrary argued that Spender waived the right to arbitrate her claim by pursuing litigation. The Court agreed and refused to compel arbitration of Spender’s claim.
A party claiming that the other party waived its right to arbitration must show that the other party knew that an applicable arbitration agreement existed and still actively participated in litigation. Breckenridge v. Farber, 640 So.2d 208, 211 (Fla. Dist. Ct. App. 1994).
In this case, Spender waived her right to arbitrate when she filed suit in court and then filed for summary judgment on the merits. Additionally, Spender litigated the claim for over two and a half years. Finally, when the trial court noticed the arbitration clause in the agreement and asked why the matter was not being arbitrated, Spender’s counsel stated that both parties waived the right to arbitrate.
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