Non-Binding Arbitration in Florida -A Cutting Edge Tool

Non-binding arbitration, a practice that’s been gaining popularity lately, has its pros and cons.  In Florida, non-binding arbitration is now allowed in many situations, as explained in the updated Chapter 44 of the Florida Statutes. This has led to a big increase in its use, with many judges and courts choosing it instead of mediation.  

What cases are appropriate for non-binding arbitration?

Beyond section 44.103, non-binding arbitration is found in many other parts of the Florida Statutes, covering a wide range of disputes. It’s a requirement for keeping civil actions going in cases involving unit owners and condominium associations, as well as claims involving cooperatives and mobile home park tenancies.  Non-binding arbitration is also allowed for certain claims against homeowners’ associations and disputes between municipalities and sign owners. It’s available in medical malpractice cases when one of the parties asks for it.

Arbitration is best for cases where one or both parties aren’t ready. In those cases, mediation can be used to learn more about the case, but it might not work well because of the lack of preparation. Unlike mediation, a party should be well-prepared in all aspects of the case when they present it for arbitration. This preparation can lead to a settlement after the arbitrator makes their decision.

Unlike mediation, arbitrations don’t have an “impasse” situation. Mediation might have failed because one or both parties weren’t prepared, had unrealistic expectations, or didn’t want to consider the outcome.

People tend to prefer deciding over compromising. Even in cases with low value, non-binding arbitration can be more cost-effective than mediation. Informal non-binding arbitration can be done faster and, therefore, cheaper than mediation. In small-value cases, using a single arbitrator might be more cost-effective than mediation and the settlement value. In higher-value cases, the cost of a three-member panel in a non-binding arbitration might not be much higher, if at all, than a lengthy mediation.

What is the process like?

Under the law, the court can send a civil action to non-binding arbitration. The arbitration process is informal, with only a few pieces of testimony and evidence. The main focus is on what the lawyers say and argue, so the arbitrator(s) can make a fair decision.

After the non-binding arbitration hearing, a written decision is given to the parties. This decision is final unless one of the parties asks for a new trial within 20 days of getting the decision. It’s important to know that a party can’t change the outcome of the non-binding arbitration by just giving up after the arbitration award. 

A party has just 20 days to request a new trial after arbitration decision.

If a party doesn’t ask for a new trial within 20 days, the judge makes the decision. The judge then makes sure everyone follows the decision by issuing orders and judgments. If both parties agree, they can stop fighting and move on.

After a trial de novo, either party can ask the judge to figure out who owes money. This includes the costs of arbitration, court fees, and reasonable attorney’s fees. The judge can do this if:

1. The plaintiff (the person suing) gets a judgment at trial that’s at least 25% less than the arbitration award.

2. The defendant (the person being sued) gets a judgment against them that’s at least 25% more than the arbitration award.

More details available at https://www-media.floridabar.org/uploads/2024/12/Civil-Procedure-Rules-01-01-25.pdf andhttp://www.leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0000-0099/0044/Sections/0044.103.html

Conclusion

In conclusion, court-ordered arbitration is different from binding arbitration under an agreement to arbitrate. Florida has the power to order courts to order contested civil actions, including construction claims, to non-binding arbitration. Some Florida trial courts have started using this practice to speed up dispute resolution without needing more judges and courtrooms. Court-appointed arbitrators must go through training and meet specific requirements. Arbitrators are paid by the parties based on the amount set by the Chief Judge in the Circuit.

While it’s best to keep the evidence to a minimum and mostly focus on the lawyers’ statements and arguments, arbitrators can issue subpoenas. Any party can get a record and transcript of the arbitration proceedings. The arbitration must be finished within 30 days of the first hearing, unless extended by a court order.

Florida Arbitration Lawyer

Attorney Andrew J. Pascale is a South Florida native and a South Florida litigation lawyer.  If you’re in need of a Florida arbitration lawyer, give Andrew a call at 877-667-1211. Just a heads up, this blog isn’t legal advice, and it’s meant to be an example, not a substitute for professional legal guidance.