HB 821

1
A bill to be entitled
2An act relating to international commercial arbitration;
3creating s. 684.0001, F.S.; providing a short title;
4creating s. 684.0002, F.S.; defining the scope of
5application of the Florida International Commercial
6Arbitration Act; creating s. 684.0003, F.S.; defining
7terms; providing rules of interpretation for the act;
8creating s. 684.0004, F.S.; providing intent that the act
9be applied and interpreted with respect to its purpose;
10creating s. 684.0005, F.S.; specifying when a written
11communication is received; creating s. 684.0006, F.S.;
12specifying circumstances that constitute a waiver of the
13right to object; creating s. 684.0007, F.S.; limiting the
14ability of a court to intervene in an arbitral proceeding;
15creating s. 684.0008, F.S.; designating the circuit court
16in which an arbitration is or will be held as the court
17that may take certain actions authorized by the act;
18creating s. 684.0009, F.S.; requiring a court to refer
19matters governed by an arbitration agreement to
20arbitration; creating s. 684.001, F.S.; authorizing a
21court to grant an interim measure of protection before or
22during an arbitral proceeding; creating s. 684.0011, F.S.;
23authorizing the parties to an arbitration to determine the
24number of arbitrators; specifying the number of
25arbitrators for a proceeding if the number of arbitrators
26is not determined by the parties; creating s. 684.0012,
27F.S.; specifying procedures for the appointment of an
28arbitrator; creating s. 684.0013, F.S.; requiring a person
29who is approached to be an arbitrator to make disclosures
30relating to conflicts of interest; authorizing the
31appointment of an arbitrator to be challenged based on a
32perceived conflict of interest or qualifications; creating
33s. 684.0014, F.S.; providing procedures to challenge the
34appointment of an arbitrator; creating s. 684.0015, F.S.;
35providing for the termination of the mandate of an
36arbitrator due to failure or impossibility to act;
37creating s. 684.0016, F.S.; providing a procedure for the
38appointment of a substitute arbitrator; creating s.
39684.0017, F.S.; authorizing an arbitral tribunal to
40determine its jurisdiction; authorizing a court to
41determine the jurisdiction of an arbitral tribunal;
42creating s. 684.0018, F.S.; authorizing an arbitral
43tribunal to grant an interim measure; creating s.
44684.0019, F.S.; specifying conditions under which an
45interim measure may be granted; creating s. 684.002, F.S.;
46specifying conditions under which an interim order may be
47granted to prevent a party from frustrating the purpose of
48an interim measure; creating s. 684.0021, F.S.; requiring
49a party to be notified of information relating to an
50interim measure or preliminary order; requiring that a
51party be given an opportunity to object to a preliminary
52order; creating s. 684.0022, F.S.; authorizing an arbitral
53tribunal to modify, suspend, or terminate an interim
54measure or preliminary order under certain circumstances;
55creating s. 684.0023, F.S.; authorizing an arbitral
56tribunal to require security as a condition of granting an
57interim measure; requiring security as a condition of
58granting a preliminary order; creating s. 684.0024, F.S.;
59requiring certain disclosures as a condition of granting
60or maintaining an interim measure or preliminary order;
61creating s. 684.0025, F.S.; providing for liability and an
62award of costs and damages; creating s. 684.0026, F.S.;
63providing for the recognition and enforcement of an
64interim measure by a court; authorizing the court to
65require security under certain circumstances; creating s.
66684.0027, F.S.; specifying grounds under which a court may
67refuse to enforce an interim measure; creating s.
68684.0028, F.S.; authorizing a court to grant an interim
69measure; creating s. 684.0029, F.S.; requiring parties to
70an arbitral proceeding to be treated with equality and
71given an opportunity to present their cases; creating s.
72684.003, F.S.; authorizing parties to an arbitration to
73agree to arbitration procedures; providing default
74procedures; creating s. 684.0031, F.S.; authorizing
75parties to an arbitration to agree on the place of
76arbitration; providing criteria to determine a default
77location for the arbitration; creating s. 684.0032, F.S.;
78specifying the date of commencement of an arbitral
79proceeding; creating s. 684.0033, F.S.; authorizing
80parties to an arbitration to agree on the language to be
81used in the proceeding; authorizing the arbitral tribunal
82to determine the language in the absence of a decision by
83the parties; creating s. 684.0034, F.S.; providing for the
84submission of claims and defenses to an arbitral tribunal;
85creating s. 684.0035, F.S.; providing for the
86determination of the method by which evidence will be
87presented before an arbitral proceeding; creating s.
88684.0036, F.S.; specifying actions that constitute a
89default by a party to an arbitral proceeding; creating s.
90684.0037, F.S.; authorizing an arbitral tribunal to
91appoint an expert and for the parties to question and
92present other experts to the tribunal's expert, unless
93otherwise agreed by the parties; creating s. 684.0038,
94F.S.; authorizing a party or an arbitral tribunal to
95request the assistance of a court in taking evidence;
96creating s. 684.0039, F.S.; providing for the choice of
97law applicable in an arbitral proceeding; creating s.
98684.004, F.S.; specifying the number of arbitrators who
99must make a decision, unless specified otherwise by the
100parties; creating s. 684.0041, F.S.; authorizing the
101parties to an arbitral proceeding to enter into a
102settlement that is recorded as an award by the arbitral
103tribunal; creating s. 684.0042, F.S.; specifying the form
104and content of an arbitral award; creating s. 684.0043,
105F.S.; specifying events that terminate or require an
106arbitral tribunal to terminate an arbitral proceeding;
107creating s. 684.0044, F.S.; authorizing an arbitral
108tribunal to correct and interpret an arbitral award or
109make an additional award under certain conditions;
110creating s. 684.0045, F.S.; providing judicial immunity to
111arbitrators acting under ch. 684, F.S.; creating s.
112684.0046, F.S.; specifying conditions under which a court
113may set aside an arbitral award; creating s. 684.0047,
114F.S.; providing for the recognition and enforcement of
115arbitral awards by a court; creating s. 684.0048, F.S.;
116specifying grounds under which a court may refuse to
117recognize or enforce an arbitral award; repealing parts I,
118II, and III of ch. 684, F.S., which create the Florida
119International Arbitration Act and provide procedures for
120the conduct of international arbitrations and authorize
121court proceedings in connection with such arbitrations;
122providing an effective date.
123
124Be It Enacted by the Legislature of the State of Florida:
125
126     Section 1.  Section 684.0001, Florida Statutes, is created
127to read:
128     684.0001  Short title.-This chapter may be cited as the
129"Florida International Commercial Arbitration Act."
130     Section 2.  Section 684.0002, Florida Statutes, is created
131to read:
132     684.0002  Scope of application.-
133     (1)  This chapter applies to international commercial
134arbitration, subject to any agreement in force between the
135United States of America and any other country or countries.
136     (2)  This chapter, except ss. 684.0009, 684.001, 684.0026,
137684.0027, 684.0028, 684.0047, and 684.0048, applies only if the
138place of arbitration is in this state.
139     (3)  An arbitration is international if:
140     (a)  The parties to an arbitration agreement have, at the
141time of the conclusion of that agreement, their places of
142business in different countries;
143     (b)  One of the following places is situated outside the
144country in which the parties have their places of business:
145     1.  The place of arbitration if determined in, or pursuant
146to, the arbitration agreement; or
147     2.  Any place where a substantial part of the obligations
148of the commercial relationship are to be performed or the place
149with which the subject matter of the dispute is most closely
150connected; or
151     (c)  The parties have expressly agreed that the subject
152matter of the arbitration agreement relates to more than one
153country.
154     (4)  For the purposes of subsection (3):
155     (a)  If a party has more than one place of business, the
156place of business is that which has the closest relationship to
157the arbitration agreement.
158     (b)  If a party does not have a place of business,
159reference shall be made to his or her habitual residence.
160     (5)  This chapter does not affect any law that may prohibit
161a matter from being resolved by arbitration or that specifies
162the manner in which a specific matter may be submitted or
163resolved by arbitration.
164     Section 3.  Section 684.0003, Florida Statutes, is created
165to read:
166     684.0003  Definitions and rules of interpretation.-
167     (1)  As used in this chapter, the term:
168     (a)  "Arbitral tribunal" means a sole arbitrator or panel
169of arbitrators.
170     (b)  "Arbitration" means any arbitration whether or not
171administered by a permanent arbitral institution.
172     (c)  "Arbitration agreement" means an agreement by the
173parties to submit to arbitration all or certain disputes that
174have arisen or may arise between them in respect of a defined
175legal relationship, whether contractual or not.
176     (d)  "Court" means a circuit court of this state.
177     (2)  A provision of this chapter, except s. 684.0038, which
178leaves the parties free to determine a certain issue, includes
179the right of the parties to authorize a third party, including
180an institution, to make that determination.
181     (3)  A provision of this chapter which refers to the fact
182that the parties have agreed or that they may agree to a
183procedure refers to an agreement of the parties. The agreement
184includes any arbitration rules referenced in that agreement.
185     (4)  A provision of this chapter, other than in s.
186684.0036(1) or s. 684.0043(2)(a), which refers to a claim also
187applies to a counter claim, and a provision that refers to a
188defense also applies to a defense to such counter claim.
189     Section 4.  Section 684.0004, Florida Statutes, is created
190to read:
191     684.0004  International origin and general principles.-
192     (1)  This chapter shall be interpreted with regard to its
193international origin and to the need to promote uniformity in
194its application and the observance of good faith.
195     (2)  Questions concerning matters governed by this chapter
196which are not expressly settled pursuant to it shall be settled
197in conformity with the general principles on which this chapter
198is based.
199     Section 5.  Section 684.0005, Florida Statutes, is created
200to read:
201     684.0005  Receipt of written communications.-
202     (1)  Unless otherwise agreed by the parties, a written
203communication is deemed to be received if it is delivered to the
204addressee personally or if it is delivered to the addressee's
205place of business, habitual residence, or mailing address. If
206one of these locations cannot be found after a reasonable
207inquiry, the written communication is deemed to be received if
208it is sent to the addressee's last known place of business,
209habitual residence, or mailing address by registered letter or
210any other means that provides a record of the attempt to deliver
211it. The communication is deemed to be received on the day it is
212delivered.
213     (2)  This section does not apply to communications in court
214proceedings.
215     Section 6.  Section 684.0006, Florida Statutes, is created
216to read:
217     684.0006  Waiver of right to object.-A party who knows that
218any provision of this chapter from which the parties may
219derogate or any requirement under the arbitration agreement has
220not been complied with and yet proceeds with the arbitration
221without stating his or her objection to such noncompliance
222without undue delay or, if a time limit is provided to object,
223within such period of time, shall be deemed to have waived his
224or her right to object.
225     Section 7.  Section 684.0007, Florida Statutes, is created
226to read:
227     684.0007  Extent of court intervention.-In matters governed
228by this chapter, a court may not intervene except to the extent
229authorized by this chapter.
230     Section 8.  Section 684.0008, Florida Statutes, is created
231to read:
232     684.0008  Court or other authority for certain functions of
233arbitration assistance and supervision.-The functions referenced
234in ss. 684.0012(3) and (4), 684.0013(3), 684.0014, 684.0015(3),
235684.0017(3), and 684.0046(2) shall be performed by the circuit
236court in the county in which the seat of the arbitration is
237located.
238     Section 9.  Section 684.0009, Florida Statutes, is created
239to read:
240     684.0009  Arbitration agreement and substantive claim
241before court.-
242     (1)  A court before which an action is brought in a matter
243that is the subject of an arbitration agreement shall, if a
244party so requests not later than when submitting its first
245statement on the substance of the dispute, refer the parties to
246arbitration unless it finds that the agreement is null and void,
247inoperative, or incapable of being performed.
248     (2)  If an action described in subsection (1) has been
249brought, arbitral proceedings may nevertheless be commenced or
250continued, and an award may be made, while the issue is pending
251before the court.
252     Section 10.  Section 684.001, Florida Statues, is created
253to read:
254     684.001  Arbitration agreement and interim measures by a
255court.-It is not incompatible with an arbitration agreement for
256a party to request from a court, before or during arbitral
257proceedings, an interim measure of protection and for a court to
258grant such a measure.
259     Section 11.  Section 684.0011, Florida Statutes, is created
260to read:
261     684.0011  Number of arbitrators.-
262     (1)  The parties may determine the number of arbitrators.
263     (2)  If the parties fail to determine the number of
264arbitrators, the number of arbitrators shall be three.
265     Section 12.  Section 684.0012, Florida Statutes, is created
266to read:
267     684.0012  Appointment of arbitrators.-
268     (1)  A person is not precluded by reason of his or her
269nationality from acting as an arbitrator, unless otherwise
270agreed by the parties.
271     (2)  The parties may agree on a procedure of appointing the
272arbitrator or arbitrators, subject to subsections (4) and (5).
273     (3)  Failing such agreement:
274     (a)  In an arbitration having three arbitrators, each party
275shall appoint one arbitrator, and the two arbitrators thus
276appointed shall appoint the third arbitrator. If a party fails
277to appoint the arbitrator within 30 days after receipt of a
278request to do so from the other party, or if the two arbitrators
279fail to agree on the third arbitrator within 30 days after their
280appointment, the appointment shall be made, upon request of a
281party, by the court or other authority specified in s. 684.0008.
282     (b)  In an arbitration having a single arbitrator, if the
283parties are unable to agree on the arbitrator, the arbitrator
284shall be appointed, upon request of a party, by the court or
285other authority specified in s. 684.0008.
286     (4)  If, under an appointment procedure agreed upon by the
287parties:
288     (a)  A party fails to act as required under such procedure;
289     (b)  The parties, or two arbitrators, are unable to reach
290an agreement under such procedure; or
291     (c)  A third party, including an institution, fails to
292perform any function entrusted to it under such procedure,
293
294any party may request the court or other authority specified in
295s. 684.0008 to take the necessary measure, unless the agreement
296on the appointment procedure provides other means for securing
297the appointment.
298     (5)  A decision on a matter entrusted by subsection (3) or
299subsection (4) to the court or other authority specified in s.
300684.0008 is not appealable. The court or other authority, in
301appointing an arbitrator, shall have due regard to any
302qualifications required by the arbitrator by the agreement of
303the parties and to such considerations that are likely to secure
304the appointment of an independent and impartial arbitrator. In
305the case of the appointment of a sole or third arbitrator, the
306court or other authority shall take into account the
307advisability of appointing an arbitrator of a nationality other
308than those of the parties.
309     Section 13.  Section 684.0013, Florida Statutes, is created
310to read:
311     684.0013  Grounds for challenge.-
312     (1)  When a person is approached in connection with a
313possible appointment as an arbitrator, the person must disclose
314any circumstances likely to give rise to justifiable doubts as
315to the person's impartiality or independence. An arbitrator,
316from the time of appointment and throughout the arbitral
317proceedings, shall disclose any such circumstances to the
318parties without delay, unless they have already been informed of
319them by him or her.
320     (2)  An arbitrator may be challenged only if circumstances
321exist that give rise to justifiable doubts as to the
322arbitrator's impartiality or independence, or if the arbitrator
323does not possess qualifications agreed to by the parties. A
324party may challenge an arbitrator appointed by it, or in whose
325appointment the party participated, only for reasons of which
326the party became aware after the appointment was made.
327     Section 14.  Section 684.0014, Florida Statutes, is created
328to read:
329     684.0014  Challenge procedure.-
330     (1)  The parties may agree on a procedure for challenging
331an arbitrator, subject to subsection (3).
332     (2)  Failing such agreement, a party who intends to
333challenge an arbitrator shall, within 15 days after becoming
334aware of the constitution of the arbitral tribunal or after
335becoming aware of any circumstance described in s. 684.0013(2),
336send a written statement of the reasons for the challenge to the
337arbitral tribunal. Unless the challenged arbitrator withdraws
338from his or her office or the other party agrees to the
339challenge, the arbitral tribunal shall decide on the challenge.
340     (3)  If a challenge under any procedure agreed upon by the
341parties or pursuant to subsection (2) is not successful, the
342challenging party may request, within 30 days after having
343received notice of the decision rejecting the challenge, the
344court or other authority specified in s. 684.0008 to decide on
345the challenge. The decision of the court is not appealable.
346While such a request is pending, the arbitral tribunal,
347including the challenged arbitrator, may continue the arbitral
348proceedings and make an award.
349     Section 15.  Section 684.0015, Florida Statutes, is created
350to read:
351     684.0015  Failure or impossibility to act.-
352     (1)  If an arbitrator becomes de jure or de facto unable to
353perform his or her functions or for other reasons fails to act
354without undue delay, his or her mandate terminates if he or she
355withdraws from office or if the parties agree on the
356termination. Otherwise, if a controversy remains concerning any
357of these grounds, any party may request the court or other
358authority specified in s. 684.0008 to decide on the termination
359of the mandate. The decision of the court is not appealable.
360     (2)  If, under this section or s. 684.0014(2), an
361arbitrator withdraws from his or her office or a party agrees to
362the termination of the mandate of an arbitrator, such actions do
363not imply the acceptance of the validity of any ground described
364in this section or in s. 684.0013(2).
365     Section 16.  Section 684.0016, Florida Statutes, is created
366to read:
367     684.0016  Appointment of substitute arbitrator.-If the
368mandate of an arbitrator terminates pursuant to s. 684.0014 or
369s. 684.0015 or because of his or her withdrawal from office for
370any other reason or because of the revocation of the mandate by
371agreement of the parties or in any other case of termination of
372the mandate, a substitute arbitrator shall be appointed pursuant
373to the rules that applied to the appointment of the arbitrator
374being replaced.
375     Section 17.  Section 684.0017, Florida Statutes, is created
376to read:
377     684.0017  Competence of arbitral tribunal to rule on its
378jurisdiction.-
379     (1)  The arbitral tribunal may rule on its own
380jurisdiction, including any objections with respect to the
381existence or validity of the arbitration agreement. For that
382purpose, an arbitration clause that forms part of a contract
383shall be treated as an agreement independent of the other terms
384of the contract. A decision by the arbitral tribunal that the
385contract is not valid does not entail ipso jure the invalidity
386of the arbitration clause.
387     (2)  A plea that the arbitral tribunal does not have
388jurisdiction must be raised not later than the submission of the
389statement of defense. A party is not precluded from raising such
390a plea by the fact that the party appointed, or participated in
391the appointment of, an arbitrator. A plea that the arbitral
392tribunal is exceeding the scope of its authority must be raised
393as soon as the matter alleged to be beyond the scope of its
394authority is raised during the arbitral proceedings. The
395arbitral tribunal may, in either case, admit a later plea it if
396considers the delay justified.
397     (3)  The arbitral tribunal may rule on a plea referenced in
398subsection (2) as a preliminary question or in an award on the
399merits. If the arbitral tribunal rules as a preliminary question
400that it has jurisdiction, any party may request, within 30 days
401after receiving notice of that ruling, that the court specified
402in s. 684.0008 decide the matter. The decision of the court is
403not appealable. While such a request is pending, the arbitral
404tribunal may continue the arbitral proceedings and make an
405award.
406     Section 18.  Section 684.0018, Florida Statutes, is created
407to read:
408     684.0018  Power of arbitral tribunal to order interim
409measures.-Unless otherwise agreed by the parties, the arbitral
410tribunal may, at the request of a party, grant interim measures.
411An interim measure is any temporary measure, whether in the form
412of an award or in another form, by which, at any time before the
413issuance of the award by which the dispute is finally decided,
414the arbitral tribunal orders a party to:
415     (1)  Maintain or restore the status quo pending
416determination of the dispute;
417     (2)  Take action to prevent, or refrain from taking action
418that is likely to cause, current or imminent harm or prejudice
419to the arbitral process;
420     (3)  Provide a means of preserving assets out of which a
421subsequent award may be satisfied; or
422     (4)  Preserve evidence that may be relevant and material to
423the resolution of the dispute.
424     Section 19.  Section 684.0019, Florida Statutes, is created
425to read:
426     684.0019  Conditions for granting interim measures.-
427     (1)  The party requesting an interim measure under s.
428684.0018 must satisfy the arbitral tribunal that:
429     (a)  Harm not adequately reparable by an award of damages
430is likely to result if the measure is not ordered, and such harm
431substantially outweighs the harm that is likely to result to the
432party against whom the measure is directed if the measure is
433granted; and
434     (b)  A reasonable possibility exists that the requesting
435party will succeed on the merits of the claim. The determination
436on this possibility does not affect the discretion of the
437arbitral tribunal in making any subsequent determination.
438     (2)  With regard to a request for an interim measure under
439s. 684.0018, the requirements in subsection (1) apply only to
440the extent the arbitral tribunal considers appropriate.
441     Section 20.  Section 684.002, Florida Statutes, is created
442to read:
443     684.002  Applications for preliminary orders and conditions
444for granting preliminary orders.-
445     (1)  Unless otherwise agreed by the parties, a party may,
446without notice to any other party, make a request for an interim
447measure together with an application for a preliminary order
448prohibiting a party from frustrating the purpose of the interim
449measure requested.
450     (2)  The arbitral tribunal may grant a preliminary order if
451it considers that prior disclosure of the request for the
452interim measure to the party against whom it is directed risks
453frustrating the purpose of the measure.
454     (3)  The conditions described in s. 684.0019 apply to any
455preliminary order if the harm assessed under s. 684.0019(1)(a)
456is the harm likely to result from the order being granted or not
457granted.
458     Section 21.  Section 684.0021, Florida Statutes, is created
459to read:
460     684.0021  Specific regime for preliminary orders.-
461     (1)  Immediately after the arbitral tribunal makes a
462determination in respect of an application for a preliminary
463order, the arbitral tribunal shall give notice to all parties of
464the request for the interim measure, the application for the
465preliminary order, the preliminary order, if any, and all other
466communications. The notice shall include a description of the
467content of any oral communication between any party and the
468arbitral tribunal in relation to any such request or
469application.
470     (2)  At the same time, the arbitral tribunal shall give an
471opportunity to any party against whom a preliminary order is
472directed to present its case at the earliest practicable time.
473     (3)  The arbitral tribunal must decide promptly on any
474objection to the preliminary order.
475     (4)  A preliminary order expires 20 days after the date on
476which it was issued by the arbitral tribunal. However, the
477arbitral tribunal may issue an interim measure adopting or
478modifying the preliminary order after the party against whom the
479preliminary order is directed is given notice and an opportunity
480to present its case.
481     (5)  A preliminary order is binding on the parties but is
482not enforceable by a court. Such a preliminary order does not
483constitute an award.
484     Section 22.  Section 684.0022, Florida Statutes, is created
485to read:
486     684.0022  Modification, suspension, or termination; interim
487measure or preliminary order.-The arbitral tribunal may modify,
488suspend, or terminate an interim measure or a preliminary order
489it has granted upon application of any party or, in exceptional
490circumstances and upon prior notice to the parties, on the
491arbitral tribunal's own initiative.
492     Section 23.  Section 684.0023, Florida Statutes, is created
493to read:
494     684.0023  Provision of security.-
495     (1)  The arbitral tribunal may require the party requesting
496an interim measure to provide appropriate security in connection
497with the measure.
498     (2)  The arbitral tribunal shall require the party applying
499for a preliminary order to provide security in connection with
500the order unless the arbitral tribunal considers it
501inappropriate or unnecessary to do so.
502     Section 24.  Section 684.0024, Florida Statutes, is created
503to read:
504     684.0024  Disclosure.-
505     (1)  The arbitral tribunal may require any party promptly
506to disclose any material change in the circumstances on the
507basis of which the interim measure was requested or granted.
508     (2)  The party applying for a preliminary order shall
509disclose to the arbitral tribunal all circumstances that are
510likely to be relevant to the arbitral tribunal's determination
511whether to grant or maintain the order, and such obligation
512continues until the party against whom the order has been
513requested has had an opportunity to present its case.
514Thereafter, subsection (1) applies.
515     Section 25.  Section 684.0025, Florida Statutes, is created
516to read:
517     684.0025  Costs and damages.-The party requesting an
518interim measure or applying for a preliminary order is liable
519for any costs and damages caused by the measure or the order to
520any party if the arbitral tribunal later determines that the
521measure or the order should not have been granted. The arbitral
522tribunal may award such costs and damages at any point during
523the proceedings.
524     Section 26.  Section 684.0026, Florida Statutes, is created
525to read:
526     684.0026  Recognition and enforcement.-
527     (1)  An interim measure issued by an arbitral tribunal
528shall be recognized as binding and, unless otherwise provided by
529the arbitral tribunal, enforced upon application to the
530competent court, irrespective of the country in which it was
531issued, subject to s. 684.0019(1).
532     (2)  The party who is seeking or has obtained recognition
533or enforcement of an interim measure shall promptly inform the
534court of the termination, suspension, or modification of the
535interim measure.
536     (3)  The court where recognition or enforcement is sought
537may, if it considers it proper, order the requesting party to
538provide appropriate security if the arbitral tribunal has not
539already made a determination with respect to security or if such
540a decision is necessary to protect the rights of third parties.
541     Section 27.  Section 684.0027, Florida Statutes, is created
542to read:
543     684.0027  Grounds for refusing recognition or enforcement.-
544     (1)  Recognition or enforcement of an interim measure may
545be refused only:
546     (a)  At the request of the party against whom it is invoked
547if the court is satisfied that:
548     1.  Such refusal is warranted on the grounds set forth in
549s. 684.0048(1)(a)1., 2., 3., or 4.;
550     2.  The arbitral tribunal's decision with respect to the
551provision of security in connection with the interim measure
552issued by the arbitral tribunal has not been complied with; or
553     3.  The interim measure was terminated or suspended by the
554arbitral tribunal or, if so empowered, by the court of the state
555or country in which the arbitration takes place or under the law
556of which that interim measure was granted; or
557     (b)  If the court finds that:
558     1.  The interim measure is incompatible with the powers
559conferred upon the court, unless the court decides to
560reformulate the interim measure to the extent necessary to adapt
561it to its own powers and procedures for the purpose of enforcing
562that interim measure and without modifying its substance; or
563     2.  Any of the grounds set forth in s. 684.0048(1)(b)1. or
5642. apply to the recognition and enforcement of the interim
565measure.
566     (2)  A determination made by the court on any ground in
567subsection (1) is effective only for the purposes of the
568application to recognize and enforce the interim measure. The
569court may not in making that determination undertake a review of
570the substance of the interim measure.
571     Section 28.  Section 684.0028, Florida Statutes, is created
572to read:
573     684.0028  Court-ordered interim measures.-A court has the
574same power of issuing an interim measure in relation to
575arbitration proceedings, irrespective of whether the arbitration
576proceedings are held in this state, as it has in relation to the
577proceedings in courts. The court shall exercise such power in
578accordance with its own procedures and in consideration of the
579specific features of international arbitration.
580     Section 29.  Section 684.0029, Florida Statutes, is created
581to read:
582     684.0029  Equal treatment of parties.-The parties shall be
583treated with equality and each party shall be given a full
584opportunity of presenting its case.
585     Section 30.  Section 684.003, Florida Statutes, is created
586to read:
587     684.003  Determination of rules of procedure.-Subject to
588the provisions of this chapter, the parties may agree on the
589procedure to be followed by the arbitral tribunal in conducting
590the proceedings. Failing such agreement, the arbitral tribunal
591may, subject to the provisions of this chapter, conduct the
592arbitration in such manner as it considers appropriate. The
593power conferred upon the arbitral tribunal includes the power to
594determine the admissibility, relevance, materiality, and weight
595of evidence.
596     Section 31.  Section 684.0031, Florida Statutes, is created
597to read:
598     684.0031  Place of arbitration.-
599     (1)  The parties may agree on the place of arbitration.
600Failing such agreement, the place of arbitration shall be
601determined by the arbitral tribunal having regard to the
602circumstances of the case, including the convenience of the
603parties.
604     (2)  Notwithstanding subsection (1), the arbitral tribunal
605may, unless otherwise agreed by the parties, meet at any place
606it considers appropriate for consultation among its members, for
607hearing witnesses, experts, or the parties, or for inspection of
608goods, other property, or documents.
609     Section 32.  Section 684.0032, Florida Statutes, is created
610to read:
611     684.0032  Commencement of arbitral proceedings.-Unless
612otherwise agreed by the parties, the arbitral proceedings in
613respect of a particular dispute commence on the date on which a
614request for that dispute to be referred to an arbitration is
615received by the respondent.
616     Section 33.  Section 684.0033, Florida Statutes, is created
617to read:
618     684.0033  Language.-
619     (1)  The parties may agree on the language or languages to
620be used in the arbitral proceedings. Failing such agreement, the
621arbitral tribunal shall specify the language or languages to be
622used in the proceedings. This agreement or determination, unless
623otherwise specified therein, applies to any written statement by
624a party, any hearing, and any award, decision, or other
625communication by the arbitral tribunal.
626     (2)  The arbitral tribunal may order that any documentary
627evidence be accompanied by a translation into the language or
628languages agreed upon by the parties or specified by the
629arbitral tribunal.
630     Section 34.  Section 684.0034, Florida Statutes, is created
631to read:
632     684.0034  Statements of claim and defense.-
633     (1)  Within the period of time agreed by the parties or
634specified by the arbitral tribunal, the claimant shall state the
635facts supporting its claim, the points at issue, and the relief
636or remedy sought, and the respondent shall state its defense to
637the claim, unless the parties have otherwise agreed as to the
638required elements of such statements. The parties may submit
639with their statements all documents they consider to be relevant
640or may add a reference to the documents or other evidence they
641will submit.
642     (2)  Unless otherwise agreed by the parties, either party
643may amend or supplement its claim or defense during the course
644of the arbitral proceedings, unless the arbitral tribunal
645considers it inappropriate to allow such amendment having regard
646to the delay in making it.
647     Section 35.  Section 684.0035, Florida Statutes, is created
648to read:
649     684.0035  Hearings and written proceedings.-
650     (1)  Subject to any contrary agreement by the parties, the
651arbitral tribunal shall decide whether to hold oral hearings for
652the presentation of evidence or for oral argument, or whether
653the proceedings shall be conducted on the basis of documents and
654other materials. However, unless the parties have agreed that no
655hearings will be held, the arbitral tribunal shall hold such
656hearings at an appropriate stage of the proceedings, if so
657requested by a party.
658     (2)  The parties shall be given sufficient advance notice
659of any hearing and of any meeting of the arbitral tribunal for
660the purposes of inspection of goods, other property, or
661documents.
662     (3)  All statements, documents, or other information
663supplied to the arbitral tribunal by one party shall be provided
664to the other party. Also, any expert report or evidentiary
665document on which the arbitral tribunal may rely in making its
666decision shall be provided to the parties.
667     Section 36.  Section 684.0036, Florida Statutes, is created
668to read:
669     684.0036  Default of a party.-Unless otherwise agreed by
670the parties, if, without showing sufficient cause:
671     (1)  The claimant fails to provide its statement of claim
672pursuant to s. 684.0034(1), the arbitral tribunal shall
673terminate the proceedings.
674     (2)  The respondent fails to communicate its statement of
675defense pursuant to s. 684.0034(1), the arbitral tribunal shall
676continue the proceedings without treating such failure in itself
677as an admission of the claimant's allegations.
678     (3)  A party fails to appear at a hearing or to produce
679documentary evidence, the arbitral tribunal may continue the
680proceedings and make the award on the evidence before it.
681     Section 37.  Section 684.0037, Florida Statutes, is created
682to read:
683     684.0037  Expert appointed by arbitral tribunal.-
684     (1)  Unless otherwise agreed by the parties, the arbitral
685tribunal may:
686     (a)  Appoint one or more experts to report to it on
687specific issues to be determined by the arbitral tribunal.
688     (b)  Require a party to give the expert any relevant
689information or produce or provide access to any relevant
690documents, goods, or other property for inspection by the
691expert.
692     (2)  Unless otherwise agreed by the parties, if a party so
693requests or if the arbitral tribunal considers it necessary, the
694expert shall, after delivery of a written or oral report,
695participate in a hearing in which the parties have the
696opportunity to question the expert and to present expert
697witnesses in order to testify on the points at issue.
698     Section 38.  Section 684.0038, Florida Statutes, is created
699to read:
700     684.0038  Court assistance in taking evidence.-The arbitral
701tribunal, or a party upon the approval of the arbitral tribunal,
702may request assistance in taking evidence from a competent court
703of this state. The court may execute the request within its
704competence and according to its rules on taking evidence.
705     Section 39.  Section 684.0039, Florida Statutes, is created
706to read:
707     684.0039  Rules applicable to substance of dispute.-
708     (1)  The arbitral tribunal shall decide the dispute
709pursuant to the rules of law chosen by the parties to apply to
710the substance of the dispute. Any designation of the law or
711legal system of a state or country shall be construed, unless
712otherwise expressed, as directly referring to the substantive
713law of that state or country and not to its conflict-of-laws
714rule.
715     (2)  Failing any designation by the parties, the arbitral
716tribunal shall apply the law determined by the conflict-of-laws
717rules that it considers applicable.
718     (3)  The arbitral tribunal shall decide ex aequo et bono or
719as amiable compositeur, only if the parties have expressly
720authorized it to do so.
721     (4)  In all cases, the arbitral tribunal shall decide in
722accordance with the terms of the contract and shall take into
723account the usages of the trade which apply to the transaction.
724     Section 40.  Section 684.004, Florida Statutes, is created
725to read:
726     684.004  Decisionmaking by panel of arbitrators.-In
727arbitral proceedings having more than one arbitrator, any
728decision of the arbitral tribunal shall be made, unless
729otherwise agreed by the parties, by a majority of all its
730members. However, questions of procedure may be decided by a
731presiding arbitrator, if so authorized by the parties or all
732members of the arbitral tribunal.
733     Section 41.  Section 684.0041, Florida Statutes, is created
734to read:
735     684.0041  Settlement.-
736     (1)  If, during arbitral proceedings, the parties settle
737the dispute, the arbitral tribunal shall terminate the
738proceedings and, if requested by the parties and not objected to
739by the arbitral tribunal, record the settlement in the form of
740an arbitral award on agreed terms.
741     (2)  An award on agreed terms shall be made pursuant to s.
742684.0042 and shall state that it is an award. Such an award has
743the same status and effect as any other award on the merits of
744the case.
745     Section 42.  Section 684.0042, Florida Statutes, is created
746to read:
747     684.0042  Form and contents of award.-
748     (1)  The award shall be made in writing and shall be signed
749by the arbitrator or arbitrators. In arbitral proceedings having
750more than one arbitrator, the signatures of the majority of all
751members of the arbitral tribunal shall suffice, if the reason
752for any omitted signature is stated.
753     (2)  The award shall state the reasons upon which it is
754based, unless the parties have agreed that no reasons are to be
755given or the award is an award on agreed terms under s.
756684.0041.
757     (3)  The award shall state its date and the place of
758arbitration as determined pursuant to s. 684.0031(1). The award
759shall be deemed to have been made at that place.
760     (4)  After the award is made, a copy signed by the
761arbitrators pursuant to subsection (1) shall be delivered to
762each party.
763     Section 43.  Section 684.0043, Florida Statutes, is created
764to read:
765     684.0043  Termination of proceedings.-
766     (1)  Arbitral proceedings are terminated by the final award
767or by an order of the arbitral tribunal pursuant to subsection
768(2).
769     (2)  The arbitral tribunal shall issue an order for the
770termination of the arbitral proceedings when:
771     (a)  The claimant withdraws its claim, unless the
772respondent objects to the withdrawal of the claim and the
773arbitral tribunal recognizes that the respondent has a
774legitimate interest in obtaining a final settlement of the
775dispute;
776     (b)  The parties agree on the termination of the
777proceedings; or
778     (c)  The arbitral tribunal finds that the continuation of
779the proceedings has for any other reason become unnecessary or
780impossible.
781     (3)  The mandate of the arbitral tribunal terminates with
782the termination of the arbitral proceedings, subject to ss.
783684.0044 and 684.0046(4).
784     Section 44.  Section 684.0044, Florida Statutes, is created
785to read:
786     684.0044  Correction and interpretation of award;
787additional award.-
788     (1)(a)  Within 30 days after receipt of the award, unless
789another period of time has been agreed upon by the parties:
790     1.  A party, with notice to the other party, may request
791the arbitral tribunal to correct in the award any errors in
792computation, any clerical or typographical errors, or any errors
793of similar nature.
794     2.  If so agreed by the parties, a party, with notice to
795the other party, may request the arbitral tribunal to give an
796interpretation of a specific point or part of the award.
797     (b)  If the arbitral tribunal considers the request to be
798justified, it shall make the correction or give the
799interpretation within 30 days after the request. The
800interpretation becomes part of the award.
801     (2)  The arbitral tribunal may correct any error described
802in subparagraph (1)(a)1. on its own initiative within 30 days
803after the date of the award.
804     (3)  Unless otherwise agreed by the parties, a party, with
805notice to the other party, may request, within 30 days after the
806receipt of the award, the arbitral tribunal to make an
807additional award as to claims presented in the arbitral
808proceedings but omitted from the award. If the arbitral tribunal
809considers the request to be justified, it shall make the
810additional award within 60 days.
811     (4)  The arbitral tribunal may extend, if necessary, the
812period of time within which it shall make a correction,
813interpretation, or additional award pursuant to subsection (1)
814or subsection (3).
815     (5)  Section 684.0042, specifying the form and contents of
816an award, applies to a correction or interpretation of the award
817or to an additional award.
818     Section 45.  Section 684.0045, Florida Statutes, is created
819to read:
820     684.0045  Immunity for arbitrators.-An arbitrator serving
821under this chapter shall have judicial immunity in the same
822manner and to the same extent as a judge.
823     Section 46.  Section 684.0046, Florida Statutes, is created
824to read:
825     684.0046  Application to set aside as exclusive recourse
826against arbitral award.-
827     (1)  Recourse to a court against an arbitral award may be
828made only by an application to set aside an arbitral award
829pursuant to subsections (2) and (3).
830     (2)  An arbitral award may be set aside by the court
831specified in s. 684.0008 only if:
832     (a)  The party making the application furnishes proof that:
833     1.  A party to the arbitration agreement defined in s.
834684.0003(1)(c) was under some incapacity or the arbitration
835agreement is not valid under the law to which the parties have
836subjected it or, failing any indication thereon, under the law
837of this state;
838     2.  The party making the application was not given proper
839notice of the appointment of an arbitrator or of the arbitral
840proceedings or was otherwise unable to present its case;
841     3.  The award deals with a dispute not contemplated by or
842not falling within the terms of the submissions to arbitration,
843or contains decisions on matters beyond the scope of the
844submission to arbitration. However, if the decisions on matters
845submitted to arbitration can be separated from those not so
846submitted, only that part of the award which contains decisions
847on matters not submitted to arbitration may be set aside; or
848     4.  The composition of the arbitral tribunal or the
849arbitral procedure was not in accordance with the agreement of
850the parties, unless such agreement was in conflict with a
851provision of this chapter from which the parties may not
852derogate, or, failing such agreement, was not in accordance with
853this chapter; or
854     (b)  The court finds that:
855     1.  The subject matter of the dispute is not capable of
856settlement by arbitration under the law of this state; or
857     2.  The award is in conflict with the public policy of this
858state.
859     (3)  An application to set aside an arbitral award may not
860be made after 3 months have elapsed after the date on which the
861party making that application receives the award or, if a
862request had been made under s. 684.0044, after the date on which
863that request had been disposed of by the arbitral tribunal.
864     (4)  The court, when asked to set aside an award, may, if
865appropriate and so requested by a party, suspend the proceedings
866to set aside the award for a period of time determined by it in
867order to give the arbitral tribunal an opportunity to resume the
868arbitral proceedings or to take such other action as in the
869arbitral tribunal's opinion will eliminate the grounds to set
870aside the award.
871     Section 47.  Section 684.0047, Florida Statutes, is created
872to read:
873     684.0047  Recognition and enforcement.-
874     (1)  An arbitral award, irrespective of the country in
875which it was made, shall be recognized as binding and, upon
876application in writing to the competent court, shall be enforced
877subject to this section and s. 684.0048.
878     (2)  The party relying on an award or applying for its
879enforcement shall supply the original or copy of the award. If
880the award is not made in the English language, the court may
881request the party to supply a translation of the award.
882     Section 48.  Section 684.0048, Florida Statutes, is created
883to read:
884     684.0048  Grounds for refusing recognition or enforcement.-
885     (1)  Recognition or enforcement of an arbitral award,
886irrespective of the country in which it was made, may be refused
887only:
888     (a)  At the request of the party against whom it is
889invoked, if that party furnishes to the competent court where
890recognition or enforcement is sought proof that:
891     1.  A party to the arbitration agreement defined in s.
892684.0003(1)(c) was under some incapacity or the arbitration
893agreement is not valid under the law to which the parties have
894subjected it or, failing any indication thereon, under the law
895of the country where the award was made;
896     2.  The party against whom the award is invoked was not
897given proper notice of the appointment of an arbitrator or of
898the arbitral proceedings or was otherwise unable to present its
899case;
900     3.  The award deals with a dispute not contemplated by or
901not falling within the terms of the submission to arbitration,
902or it contains decisions on matters beyond the scope of the
903submission to arbitration. However, if the decisions on matters
904submitted to arbitration can be separated from those not so
905submitted, that part of the award which contains decisions on
906matters submitted to arbitration may be recognized and enforced;
907     4.  The composition of the arbitral tribunal or the
908arbitral procedure was not in accordance with the agreement of
909the parties or, failing such agreement, was not in accordance
910with the law of the country where the arbitration took place; or
911     5.  The award has not yet become binding on the parties or
912has been set aside or suspended by a court of the country in
913which, or under the law of which, that award was made; or
914     (b)  If the court finds that:
915     1.  The subject matter of the dispute is not capable of
916settlement by arbitration under the laws of this state; or
917     2.  The recognition or enforcement of the award would be
918contrary to the public policy of this state.
919     (2)  If an application for setting aside or suspension of
920an award has been made to a court referenced in subparagraph
921(1)(a)5., the court where recognition or enforcement is sought
922may, if it considers it proper, adjourn its decision and may
923also, on the application of the party claiming recognition or
924enforcement of the award, order the other party to provide
925appropriate security.
926     Section 49.  Parts I, II, and III of chapter 684, Florida
927Statutes, consisting of sections 684.01, 684.02, 684.03, 684.04,
928684.05, 684.06, 684.07, 684.08, 684.09, 684.10, 684.11, 684.12,
929684.13, 684.14, 684.15, 684.16, 684.17, 684.18, 684.19, 684.20,
930684.21, 684.22, 684.23, 684.24, 684.25, 684.26, 684.27, 684.28,
931684.29, 684.30, 684.31, 684.32, 684.33, 684.34, and 684.35, are
932repealed.
933     Section 50.  This act shall take effect July 1, 2010.


CODING: Words stricken are deletions; words underlined are additions.