Arbitration in Florida Construction and Real Estate Disputes
Efficient Dispute Resolution in Florida Real Estate & Construction Law
In Florida’s dynamic real estate and construction industries, legal disputes are common—whether over payment, workmanship, delays, design defects, or title issues. Many of these matters are resolved through arbitration, a legally recognized form of alternative dispute resolution (ADR) governed by both contract and Florida law.
Arbitration provides a private, often faster, and more cost-effective method of dispute resolution. It is frequently required in Florida construction contracts, real estate purchase agreements, developer agreements, and condominium association bylaws.
At Law Offices of Adam G. Hill, we represent property owners, developers, general contractors, subcontractors, and real estate professionals throughout Florida in arbitration proceedings. Below, we break down the process, the legal framework, and the key considerations specific to Florida law.
Arbitration in Florida: Legal Framework
1. Florida Arbitration Code – Chapter 682, Florida Statutes
Arbitration in Florida is governed by the Florida Arbitration Code, codified at Chapter 682, Florida Statutes. This law closely follows the Revised Uniform Arbitration Act and provides the rules for:
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Enforcing arbitration agreements
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Appointing arbitrators
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Conducting arbitration hearings
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Modifying or vacating arbitration awards
Statute Excerpt:
§ 682.02, Fla. Stat. (2024) – “A written agreement to submit any existing controversy to arbitration or a provision in a written contract to submit to arbitration any controversy thereafter arising between the parties is valid, enforceable, and irrevocable without regard to the justiciable character of the controversy.”
2. Construction Lien Law and Arbitration – Chapter 713, Florida Statutes
Even when a dispute is subject to arbitration, Florida’s Construction Lien Law still applies. Lien rights must be preserved independently of the arbitration process.
Statute Excerpt:
§ 713.21(4), Fla. Stat. (2024) – “The commencement of an action to enforce a lien or the assertion of a lien in a counterclaim or cross-claim shall not bar arbitration of a dispute if otherwise required by an enforceable arbitration clause in a written contract.”
This means a contractor can still assert lien rights in court while pursuing or defending arbitration.
3. Judicial Enforcement and Review of Arbitration
If one party refuses to arbitrate, the other can petition the court to compel arbitration under:
§ 682.03(1), Fla. Stat. (2024) – “On application of a party showing an agreement described in s. 682.02, and the opposing party’s refusal to arbitrate, the court shall order the parties to proceed with arbitration.”
The courts will enforce arbitration agreements unless the clause is found to be unconscionable or contrary to public policy.
Florida Case Law on Arbitration in Construction & Real Estate Disputes
Seifert v. U.S. Home Corp., 750 So. 2d 633 (Fla. 1999)
A leading case on the enforceability of arbitration clauses. The Florida Supreme Court held that an arbitration clause must clearly relate to the dispute at hand. In this case, a wrongful death suit was found to be outside the scope of a construction contract's arbitration clause.
Key takeaway: Arbitration clauses must be clearly drafted and linked to the scope of possible future disputes.
Houchins v. King & Co. of West Florida, Inc., 969 So. 2d 231 (Fla. 1st DCA 2007)
This case affirmed that Florida courts will enforce arbitration clauses in construction contracts even when lien claims are simultaneously filed in court.
Key takeaway: Florida law allows lien foreclosure actions and arbitration to proceed concurrently when properly structured.
Cardegna v. Buckeye Check Cashing, Inc., 894 So. 2d 860 (Fla. 2005)
Although primarily concerning consumer arbitration, the Florida Supreme Court reiterated that challenges to contract formation must be resolved before arbitration, while challenges to the validity of the entire contract can be decided by the arbitrator.
What Florida Construction or Real Estate Arbitration Clauses Should Include
For enforceability and clarity, contracts should specify:
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Governing arbitration rules (e.g., AAA Construction Industry Rules, JAMS)
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Venue (e.g., Orange County, Hillsborough County, Lee County)
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Number and qualifications of arbitrators
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Whether the award will be binding
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Procedures for selecting arbitrators
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Allocation of costs and fees
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Survival clause: Arbitration should survive termination of the contract
Arbitration vs. Litigation in Florida Construction Disputes
Feature | Arbitration | Litigation |
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Timeline | Often resolved in 6–12 months | May take 1–3 years or longer |
Cost | Lower, but arbitrators charge fees | Court is free, but litigation is costly |
Appeal Rights | Very limited under § 682.13, Fla. Stat. | Full right to appeal |
Public Record | Confidential | Public record |
Enforceability | Award enforceable in court under § 682.15 | Court judgment enforceable |
Grounds to Vacate an Arbitration Award in Florida
Under § 682.13, Florida Statutes, a court may vacate an arbitration award only if:
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The award was procured by fraud or corruption
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There was evident partiality or misconduct by the arbitrator
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The arbitrator exceeded their powers
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There was no valid arbitration agreement
The burden to overturn an arbitration award is very high—making experienced legal representation critical.
Our Florida Arbitration Services
We provide full-service legal counsel for:
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Drafting and reviewing arbitration clauses
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Representing clients in AAA, JAMS, and ad hoc arbitrations
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Enforcing or vacating arbitration awards in Florida courts
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Construction defect and delay disputes
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Payment and breach of contract claims
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Real estate closing disputes, title conflicts, and brokerage claims
Speak with a Florida Arbitration Attorney Today
Whether you're a property owner, developer, contractor, or real estate investor, an attorney at Law Offices of Adam G. Hill can help you navigate arbitration strategically and effectively. We serve clients statewide, including in:
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Orlando & Central Florida
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Tampa Bay Area
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Fort Myers & Southwest Florida
Call us today for a free case review: 833-918-1877
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