Senate Bill sb2242

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    Florida Senate - 2005                                  SB 2242

    By Senator Clary





    4-1353A-05

  1                      A bill to be entitled

  2         An act relating to arbitration; amending s.

  3         682.02, F.S.; clarifying provisions governing

  4         the application of arbitration agreements;

  5         amending s. 682.03, F.S.; clarifying

  6         provisions; prohibiting refusal of an order of

  7         arbitration on the grounds that the claim

  8         alleges a contract is voidable or illegal;

  9         amending s. 682.18, F.S.; prohibiting a court

10         from refusing to enforce certain arbitration

11         agreements or provisions; providing an

12         effective date.

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14  Be It Enacted by the Legislature of the State of Florida:

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16         Section 1.  Section 682.02, Florida Statutes, is

17  amended to read:

18         682.02  Arbitration agreements made valid, irrevocable,

19  and enforceable; scope.--Two or more parties may agree in

20  writing to submit to arbitration any controversy existing

21  between them at the time of the agreement, or they may include

22  in a written contract a provision for the settlement by

23  arbitration of any controversy thereafter arising between them

24  relating to such contract or the failure or refusal to perform

25  the whole or any part thereof. This section also applies to

26  written interlocal agreements under ss. 163.01 and 373.1962 in

27  which two or more parties agree to submit to arbitration any

28  controversy between them concerning water use permit

29  applications and other matters, regardless of whether or not

30  the water management district with jurisdiction over the

31  subject application is a party to the interlocal agreement or

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    Florida Senate - 2005                                  SB 2242
    4-1353A-05




 1  a participant in the arbitration. Such agreement or provision

 2  made pursuant to this act; the Federal Arbitration Act, 9

 3  U.S.C. s. 1-14; or the laws of any other state, territory,

 4  commonwealth, or country is shall be valid, enforceable, and

 5  irrevocable without regard to the justiciable character of the

 6  controversy or the legality of the agreement. However, except

 7  as otherwise provided in this section; provided that this act

 8  does shall not apply to any such agreement or provision to

 9  arbitrate in which it is stipulated that this law shall not

10  apply or to any arbitration or award thereunder.

11         Section 2.  Subsections (1) and (5) of section 682.03,

12  Florida Statutes, are amended to read:

13         682.03  Proceedings to compel and to stay

14  arbitration.--

15         (1)  A party to an agreement or provision for

16  arbitration subject to this law claiming the neglect or

17  refusal of another party thereto to comply therewith may make

18  application to the court for an order directing the parties to

19  proceed with arbitration in accordance with the terms thereof.

20  If the court is satisfied that no substantial issue exists as

21  to the making of the arbitration agreement or provision, it

22  shall grant the application.  If the court finds shall find

23  that a substantial issue is raised as to the making of the

24  arbitration agreement or provision, it shall summarily hear

25  and determine the issue and, according to its determination,

26  shall grant or deny the application.

27         (5)  An order for arbitration shall not be refused on

28  the ground that the claim in issue lacks merit or bona fides,

29  that it alleges that the contract is voidable, illegal, or

30  void ab initio, or because any fault or grounds for the claim

31  sought to be arbitrated have not been shown.

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    Florida Senate - 2005                                  SB 2242
    4-1353A-05




 1         Section 3.  Subsection (3) is added to section 682.18,

 2  Florida Statutes, to read:

 3         682.18  Court; definition; jurisdiction.--

 4         (3)  A court may not refuse to enforce an otherwise

 5  valid agreement or provision for arbitration made pursuant to

 6  this act; the Federal Arbitration Act, 9 U.S.C. s. 1-14; or

 7  the laws of any state, territory, commonwealth, or country on

 8  the grounds that a contract to which the agreement or

 9  provision relates may be illegal, voidable, or void ab initio.

10         Section 4.  This act shall take effect July 1, 2005.

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13                          SENATE SUMMARY

14    Clarifies certain provisions relating to arbitration
      agreements. Prohibits a court from refusing to enforce
15    certain arbitration agreements or provisions on the
      grounds that certain related contracts may be illegal,
16    void, or voidable.

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