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Despite the Florida legislature's provision for an interlocutory appeal, the Florida District Court of Appeal held that an order vacating an arbitration award is nonappealable because the Florida Supreme Court has not conferred appellate jurisdiction as required by the Florida Constitution.
In Parvin v. Valhalla Properties On Sand Key, LLC, No. 2D05-5022, 2007 WL 641853 (Fla. Dist. Ct. App. Feb. 28, 2007), Parvin and Valhalla submitted a dispute to arbitration. The arbitrator issued an award in Parvin's favor, but the trial court vacated the award.
Parvin appealed from the order vacating the award pursuant the Florida Arbitration Code, which provides that "[a]n appeal may be taken from . . . [a]n order confirming or denying confirmation of an award." Fla. Stat. Ann. § 682.20(1)(c).
Despite the statutory provision for an interlocutory appeal, the Court dismissed the appeal for lack of jurisdiction because under the Florida Constitution, district courts of appeal may review interlocutory orders only "to the extent provided by rules adopted by the supreme court." Fla. Const. art. V, § 4(b)(1).
Under the Florida Rules of Appellate Procedure promulgated by the Florida Supreme Court, parties have the right to an interlocutory appeal from an order "determin[ing] . . . the entitlement of a party to arbitration" (e.g., an order denying a motion to compel arbitration), but there is no provision for an interlocutory appeal from an order vacating an arbitration award. See Fla. R. App. Proc. 9.130(a)(3)(C)(iv). Accordingly, the Court determined that the order vacating the award was nonappealable.
This appellate procedure undermines the efficiency of arbitration because under this approach, vacatur will generally force the parties to return to arbitration regardless of whether the trial court abided by the limitations on judicial review of an arbitration award – limits that are meant to ensure the finality and efficiency of arbitration.
Fortunately, in most jurisdictions, parties have the right to an interlocutory appeal from an order vacating an arbitration award. See, e.g., 9 U.S.C.A. § 16(a)(1)(E).
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