LENNAR HOMES, LLC v. MATTHEW WILKINSKY ( 2023 )


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  •        DISTRICT COURT OF APPEAL OF THE STATE OF FLORIDA
    FOURTH DISTRICT
    LENNAR HOMES, LLC,
    Appellant,
    v.
    MATTHEW WILKINSKY,
    Appellee.
    No. 4D22-1239
    [January 4, 2023]
    Appeal of a nonfinal order from the Circuit Court for the Seventeenth
    Judicial Circuit, Broward County; Barbara Anne McCarthy, Judge; L.T.
    Case No. CACE21-016619.
    David M. Gersten and Eric R. Thompson of Gordon Rees Scully
    Mansukhani, Miami, and Kelly Ann Luther and Giselle G. Manseur of
    Kasowitz Benson Torres LLP, Miami, for appellant.
    William G. Wolk of Eaton & Wolk, PL, Miami, for appellee.
    PER CURIAM.
    Lennar Homes, LLC, appeals a nonfinal order denying its motion to
    compel arbitration. The trial court denied the motion based on Dewees v.
    Johnson, 
    329 So. 3d 765
     (Fla. 4th DCA 2021).
    Unlike Dewees, the arbitration provisions in this case expressly and
    unambiguously extend to personal injuries suffered by plaintiff within the
    residential community where the home he purchased was located.
    Because the arbitration provisions are clear, the “significant relationship”
    test used in Dewees does not apply. 
    Id. at 770
    . Thus, we reverse.
    Background
    Lennar developed the Cascata at MiraLago residential community (the
    “Community”). In 2018, Lennar sold a home in the Community to plaintiff
    Matthew Wilkinsky.
    The arbitration clause in the Purchase and Sale Agreement states:
    The parties to this Agreement specifically agree that . . .
    any Dispute (as hereinafter defined) shall first be submitted to
    mediation and, if not settled during mediation, shall thereafter
    be submitted to binding arbitration . . . and not by or in a court
    of law or equity. “Disputes” (whether contract, warranty, tort,
    statutory or otherwise), shall include, but are not limited to,
    any and all controversies, disputes or claims (1) arising under,
    or related to, this Agreement, the Property, the Community or
    any dealings between Buyer and Seller; (2) arising by virtue of
    any representations, promises or warranties alleged to have
    been made by Seller or Seller’s representative; (3) relating to
    personal injury or property damage alleged to have been
    sustained by Buyer, Buyer’s children or other occupants of
    the Property, or in the Community . . . .
    (emphasis added). The deed contains an arbitration clause that similarly
    includes personal injuries sustained “in the Community.”
    In 2020, Wilkinsky was riding his bicycle on a road in the Community
    when he fell and suffered injuries. He sued Lennar for negligence, alleging
    that his injuries were caused by a raised manhole cover that was
    improperly paved by Lennar or its agents.
    Lennar filed a motion to dismiss and to compel arbitration. Wilkinsky
    responded that, in Dewees, this Court held a similar arbitration clause in
    a home sale contract was “overbroad and inapplicable to personal injuries
    because there was no contractual nexus between the injury claim” and the
    home purchase contract.
    The trial court denied Lennar’s motion to compel based on Dewees.
    This appeal follows.
    Analysis
    Our review of the purely legal issues is de novo. Hayslip v. U.S. Home
    Corp., 
    276 So. 3d 109
    , 113 (Fla. 2d DCA 2019). Public policy favors
    arbitration, and “[a]ny doubt about the scope of the arbitration clause
    should be resolved in favor of arbitration.” Fed. Vending, Inc. v. Steak &
    Ale of Fla., Inc., 
    687 So. 2d 1366
    , 1368 (Fla. 4th DCA 1997).
    This case turns on the meaning of Dewees. We find that the trial court
    erred in ruling that Dewees restricted the scope of the unambiguous
    clause in this case, which expressly includes personal injury claims “in
    2
    the Community.” In this case, the plain language of the arbitration
    agreement controls.
    In Seifert v. U.S. Home Corp., 
    750 So. 2d 633
     (Fla. 1999), the Florida
    Supreme Court recognized that the parties’ intent controls and that an
    arbitration clause can include tort claims. “The intent of the parties to a
    contract, as manifested in the plain language of the arbitration provision
    and contract itself, determines whether a dispute is subject to arbitration.”
    Jackson v. Shakespeare Found., Inc., 
    108 So. 3d 587
    , 593 (Fla. 2013).
    The “significant relationship” or “contractual nexus” test applied in
    Dewees is used to determine the scope of a broad arbitration clause, such
    as one that applies to claims “relating to” a contract:
    Two basic types of arbitration provisions have emerged: (1)
    provisions with language and application narrow in scope,
    and (2) provisions with language and application broad in
    scope. An arbitration provision that is considered to be
    narrow in scope typically requires arbitration for claims or
    controversies “arising out of” the subject contract. This type
    of provision limits arbitration to those claims that have a
    direct relationship to a contract’s terms and provisions. In
    contrast, an arbitration provision that is considered to be
    broad in scope typically requires arbitration for claims or
    controversies “arising out of or relating to” the subject
    contract. The addition of the words “relating to” broadens the
    scope of an arbitration provision to include those claims that
    are described as having a “significant relationship” to the
    contract—regardless of whether the claim is founded in tort or
    contract law.
    Jackson, 
    108 So. 3d at 593
     (emphasis added) (citations omitted).
    The significant relationship or contractual nexus test applies only
    where the arbitration agreement uses broad language that does not
    expressly include the claim at issue.
    “[W]hen the language of the contract is clear and unambiguous, the
    contract must be interpreted and enforced in accordance with its plain
    meaning.” Lake City Fire & Rescue Ass’n, Local 2288 v. City of Lake City,
    
    240 So. 3d 128
    , 130 (Fla. 1st DCA 2018) (citation omitted).
    The trial court mistakenly believed that, pursuant to Dewees, the scope
    of an arbitration agreement is always limited to claims with a contractual
    3
    nexus to the agreement. But Dewees required interpretation of a broad
    arbitration clause that did not expressly apply to personal injury claims in
    the community.
    In Dewees, the plaintiff purchased a home in a residential community
    and brought a negligence claim against the developer for injuries suffered
    in a bicycle accident allegedly caused by the developer failing to properly
    maintain the roadways. 329 So. 3d at 767. The parties’ purchase
    agreement contained a broad arbitration clause. 1
    Importantly, the clause in Dewees included personal injury claims, but
    did not expressly provide that it applied to personal injury claims “in the
    community.” Id. at 770.
    Because the arbitration language in Dewees was broad but ambiguous
    as to whether it included the tort claim at issue, this Court applied the
    “significant relationship” test. Id. (“Here, because the Purchase Contract
    includes an arbitration provision containing broad arbitration language,
    the claims subject to arbitration are not only those that arise out of the
    Purchase Contract but also those with a significant relationship to the
    Purchase Contract.”).
    1   The arbitration clause in Dewees provided:
    This contract provides that all post-closing claims, disputes, and
    controversies (hereinafter collectively “claims”) between purchaser
    and seller will be resolved by binding arbitration . . . .
    [P]urchaser and seller hereby mutually, knowingly and voluntarily
    agree that . . . any and all claims by or between purchaser and seller
    which occur post-closing, even those based upon a theory not
    recognized at the time this agreement is executed, shall be
    submitted to binding arbitration for resolution, such claims
    include, without limitation, claims that arise from or in connection
    with, or relate to: . . . (C) the home, its design, or its construction;
    (D) the real property on which the home is situated . . . . This
    provision shall apply to all post-closing claims . . . regardless of the
    legal theory alleged (including, without limitation, breach of
    contract, tort, violation of statute, code, rule or regulation, or
    breach of any implied covenant or duty), the type of injury alleged
    (including, without limitation, monetary, property damage,
    personal injury . . . .
    329 So. 3d at 767-68.
    4
    Unlike the arbitration provision in Dewees, here, the arbitration
    provisions are unambiguous and expressly extend to personal injuries “in
    the Community.” The plain language of the agreement controls. 2
    Accordingly, we reverse and remand with directions to grant the
    motion to dismiss and to compel arbitration.
    Reversed and remanded.
    GROSS, CIKLIN and LEVINE, JJ., concur.
    *         *         *
    Not final until disposition of timely filed motion for rehearing.
    2 Wilkinsky also contends that he did not agree to arbitrate the tort claims
    because the agreement provides that arbitration is pursuant to the American
    Arbitration Association (“AAA”) Home Construction Arbitration Rules or the AAA’s
    Construction Industry Arbitration Rules. This argument has no merit. Personal
    injury claims are not excluded by these rules. Additionally, we have previously
    enforced arbitration clauses as to tort claims under these rules. See, e.g., Engle
    Homes, Inc. v. Jones, 
    870 So. 2d 908
    , 909, 911 (Fla. 4th DCA 2004).
    5