1906 COLLINS LLC, etc. v. MIGUEL ANGEL CHIBRAS ROMERO ( 2022 )


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  •        Third District Court of Appeal
    State of Florida
    Opinion filed August 17, 2022.
    Not final until disposition of timely filed motion for rehearing.
    ________________
    No. 3D20-1047
    Lower Tribunal No. 19-28425
    ________________
    1906 Collins LLC, etc., et al.,
    Appellants,
    vs.
    Miguel Angel Chibras Romero, et al.,
    Appellees.
    An Appeal from a non-final order from the Circuit Court for Miami-Dade
    County, Valerie R. Manno Schurr, Judge.
    Dickinson Wright PLLC, and Catherine F. Hoffman and Vijay G.
    Brijbasi, (Fort Lauderdale), for appellants.
    Law Office of John H. Schulte, and John H. Schulte, for appellees.
    Before SCALES, GORDO and BOKOR, JJ.
    BOKOR, J.
    The lawsuit before the trial court asserts multiple claims against
    several defendants and involves a dispute between once-partners, owners,
    managers, and operators of Bâoli, a popular nightclub in Miami Beach.
    International partners, holding companies, big business, real estate,
    allegations of contractual breach and betrayal—the music stopped, the
    parties soured on each other, and the cold florescent lights of the Dade
    County Courthouse replaced the velvet ropes, bottle service, and thumping
    beats of the South Beach nightclub scene. But this appeal addresses none
    of that intrigue. Here, we just determine who gets to hear it.
    The operators of the nightclub, 1906 Collins, LLC and Mr. Hospitality,
    LLC, seek relief from the trial court’s order compelling arbitration on certain
    counts of the amended complaint. The operators contend that the relevant
    agreement permits the claims to proceed in the underlying lawsuit. For the
    reasons explained below, we agree with the operators.1
    BACKGROUND
    Five of the eight counts of the operative complaint filed by 1906 Collins
    and Mr. Hospitality address the conduct of Michael Ridard, an employee of
    Mr. Hospitality and the chief operating officer of the nightclub. Count III
    1
    We have jurisdiction. See Fla. R. App. P. 9.130(a)(3)(C)(iv).
    2
    asserts a breach of non-solicitation and non-competition covenants in
    Ridard’s employment agreement with Mr. Hospitality. 2 Counts IV and V
    assert claims against various other defendants for aiding and abetting
    Ridard’s alleged breach of contract. Count VI claims tortious interference by
    Ridard with the nightclub’s business based on the same conduct. Count VII
    asserts common law unfair competition claims against Ridard and other
    defendants, also based on the same conduct. All these claims sought both
    damages and injunctive relief to enforce the terms of the employment
    agreement.
    Ridard and the other defendants moved to compel arbitration pursuant
    to the employment agreement.         The agreement contains an arbitration
    provision stating that “[e]xcept as provided in Section 6F hereof, any
    controversy arising out of or relating to this Agreement or the breach hereof
    shall be settled by arbitration.” Section 6F of the agreement, titled “Injunctive
    Relief,” provides that:
    Ridard acknowledges and agrees that the covenants and
    restrictions contained in Sections 6A through 6E hereof are
    necessary, fundamental and required for the protection of the
    goodwill of the Business and the Company, and that such
    covenants and restrictions relate to matters which are of a
    special, unique and extraordinary character that gives each of
    such covenants and restrictions a special, unique and
    2
    Ridard and Mr. Hospitality were the only signatories to the employment
    agreement.
    3
    extraordinary value. For these reasons, and because a breach
    of the covenants and restrictions contained in Sections 6A
    through 6E hereof will result in irreparable harm and damages
    to the Company that cannot be adequately compensated by a
    monetary award, it is expressly agreed that in addition to all other
    remedies available at law or equity, the Company shall be
    entitled to the immediate remedy of a temporary restraining
    order, preliminary injunction, or other form of injunctive or
    equitable relief as may be used by any court of competent
    jurisdiction to restrain or enjoin Ridard from breaching any such
    covenant or restriction, or to specifically enforce the provisions of
    these Sections, without posing [sic] bond.
    Interpreting this agreement, the trial court granted the motion to compel
    arbitration as to counts III through VII, finding that a valid and enforceable
    arbitration agreement existed between Mr. Hospitality and Ridard, that the
    agreement mandated arbitration of the claims against Ridard, and that the
    other parties could also be compelled to arbitrate because the claims
    involving them relied on the same factual nucleus as the claims against
    Ridard. This appeal followed.
    ANALYSIS
    We review a trial court’s order on a motion to compel arbitration de
    novo. See, e.g., MV Ins. Consultants v. NAFH Nat’l Bank, 
    87 So. 3d 96
    , 98
    (Fla. 3d DCA 2012). Under both the state and federal arbitration codes,
    when considering a motion to compel arbitration, a court evaluates three
    factors: (1) whether a valid agreement to arbitrate exists; (2) whether an
    arbitrable issue exists; and (3) whether the right to arbitration has been
    4
    waived. See, e.g., Seifert v. U.S. Home Corp., 
    750 So. 2d 633
    , 636 (Fla.
    1999). “A court must compel arbitration where an arbitration agreement and
    an arbitrable issue exists, and the right to arbitrate has not been waived.”
    Miller & Solomon Gen. Contractors, Inc. v. Brennan’s Glass Co., Inc., 
    824 So. 2d 288
    , 290 (Fla. 4th DCA 2002) (quotation omitted). “[I]n determining
    whether the parties have agreed to arbitrate a particular dispute, arbitration
    provisions are to be construed following general principles of contract
    interpretation, and no party may be forced to submit a dispute to arbitration
    if the parties did not intend and agree to arbitrate that dispute.” MV Ins.
    Consultants, 
    87 So. 3d at
    98–99 (citation omitted).
    The   employment      agreement     unambiguously     excludes    claims
    described in Section 6F from arbitration. Section 6F (which references and
    directly follows Sections 6A through 6E, the non-solicitation and non-
    compete covenants allegedly breached by Ridard) allows Mr. Hospitality to
    seek, “in addition to all other remedies available at law or equity, injunctive
    or equitable relief as may be used by any court of competent jurisdiction to
    restrain or enjoin Ridard from breaching any such covenant or restriction, or
    to specifically enforce the provisions of these Sections.” This provision,
    specifically excluded from the arbitration provision, allows Mr. Hospitality to
    bring an action in a court of competent jurisdiction and seek injunctive relief
    5
    to enforce the covenants and restrictions in the agreement. Further, the
    inclusion of the phrase “in addition to all other remedies available at law or
    equity” indicates that Mr. Hospitality is not limited solely to seeking injunctive
    remedies in pursuing such a claim.
    “It is fundamental that where a contract is clear and unambiguous in
    its terms, the court may not give those terms any meaning beyond the plain
    meaning of the words contained therein.” GEICO Indem. Co. v. Walker, 
    319 So. 3d 661
    , 665 (Fla. 4th DCA 2021) (quotation omitted). Because counts
    III through VII of the complaint relate to the enforcement or breach of
    covenants or restrictions in the agreement, the trial court erred in compelling
    arbitration of such claims. 3 Accordingly, we reverse the trial court’s order
    compelling arbitration and remand for further proceedings consistent with
    this opinion.
    Reversed and remanded.
    3
    Additionally, because we conclude that the contract clearly and
    unambiguously excluded the challenged claims from mandatory arbitration,
    we need not decide whether the trial court lacked a legal basis to compel
    arbitration as to 1906 Collins, a non-party to the employment agreement.
    See, e.g., Stalley v. Transitional Hosps. Corp. of Tampa, Inc., 
    44 So. 3d 627
    ,
    629 (Fla. 2d DCA 2010) (explaining that “[a]s a general rule, only the actual
    parties to the arbitration agreement can be compelled to arbitrate,” except in
    limited situations where the nonparty is an authorized agent of a signatory).
    6