Florida offers a wide range of dispute resolution processes, including court litigation, mediation, early neutral evaluation, and both binding and non-binding arbitration. Each process has strengths and limitations. So, when should Florida arbitration be the process of choice?
In Florida, as in many jurisdictions, arbitration can be a powerful alternative to litigation—offering privacy, speed, and finality. But it’s not always the best fit. This article outlines the key considerations for parties and attorneys deciding when to use Florida arbitration.
What Is Florida Arbitration?
Florida arbitration is a private adjudicative process where a neutral arbitrator—or a panel of arbitrators—renders a decision after hearing evidence and legal arguments. The parties typically agree in advance to be bound by the result, although non-binding arbitration is also a potential option depending on the case.
Florida law recognizes both voluntary contractual arbitration and certain forms of court-ordered arbitration.
When Florida Arbitration May Be a Smart Choice
1. When Privacy Matters
Unlike court litigation, which is public by default, Florida arbitration proceedings are private. This can be critical in:
- Employment disputes
- Business breakups or partnership conflicts
- Healthcare or intellectual property issues
- Situations involving reputational risk
The Florida Arbitration Code does not require public disclosure of filings or outcomes unless the parties seek court enforcement of an award.
2. When a Binding Decision Is Needed Without Going to Court
If Florida mediation doesn’t result in agreement—or the parties want to avoid lengthy litigation—binding Florida arbitration provides a final decision enforceable in court.
Arbitration may be ideal when:
- The parties want closure
- The amount in dispute doesn’t justify full-scale litigation
- There’s urgency or a business need for resolution
3. When You Want a Decision-Maker with Specialized Expertise
In Florida, parties can select arbitrators with industry-specific knowledge, such as:
- Construction law
- Insurance claims
- Real estate disputes
- Complex commercial contracts
Arbitrators can be attorneys, retired judges, or other professionals with relevant backgrounds. This tailored expertise can reduce the time needed to educate the decision-maker and increase satisfaction with the outcome.
4. When You Want to Avoid Delays in the Court System
Some Florida courts are overwhelmed with caseloads. Post-COVID backlogs and limited resources can lead to trial dates years away. In contrast, Florida arbitration can be:
- Scheduled quickly
- Conducted via Zoom or in person
- Resolved in a matter of months
For businesses or individuals seeking efficiency, this is often a compelling reason to choose Florida arbitration.
Florida arbitration can also be held before, during, or after litigation. If parties have not agreed to Florida arbitration in a contract, they may still agree to arbitrate a current dispute through a post-dispute agreement.
When Florida Arbitration Might Not Be the Right Fit
While arbitration offers many benefits, there are trade-offs.
- Limited Judicial Review
Under Florida law, courts may only vacate or modify an arbitration award in narrow, specific circumstances, such as:
- Corruption or misconduct by the arbitrator
- Arbitrators exceeding their powers
- Failure to follow the procedure in the arbitration agreement
What About Florida Non-Binding Arbitration in Florida Courts?
Florida courts can order non-binding arbitration in some instances under Rule 1.820 of the Florida Rules of Civil Procedure. This process is faster and less formal than a trial. While the decision is not final, it can lead to a settlement or clarify issues.
In contrast to a binding Florida arbitration, in certain circumstances, the parties have the option of rejecting the award and proceeding forward with litigation pursuant to Florida Statutes § 44.103. However, parties who reject a non-binding arbitration result must be prepared to proceed to trial.
Should You Include Florida Arbitration Clauses in Florida Contracts?
When drafting or reviewing contracts in Florida, it’s worth considering whether to include an arbitration clause. Ask:
- Do the parties prefer a private, binding resolution?
- Is there a potential for cross-border or multi-state enforcement?
- Do the parties want to limit litigation costs and delays?
If so, a well-drafted arbitration clause can protect both sides. But it’s important to:
- Specify the rules
- Choose the location (e.g., Miami, Orlando, Tampa)
- Determine the number of arbitrators
- Clarify whether arbitration is binding or non-binding
Combining Florida Mediation and Florida Arbitration (Med-Arb)
In some cases, Florida parties agree to use Florida mediation followed by Florida arbitration—a hybrid known as med-arb. This approach:
- Encourages resolution by agreement first
- Offers finality if negotiation fails
However, ethical concerns can arise if the same person serves as both mediator and arbitrator. Parties should consult with experienced professionals before using this model.
Conclusion: Make Florida Arbitration an Intentional Choice
Florida arbitration is not “better” or “worse” than litigation or mediation—it’s just different. In Florida, it can be a highly effective path to resolution if used consciously and strategically.
Before choosing Florida arbitration, parties and attorneys should ask:
- What matters most—speed, cost, privacy, enforceability, or control?
- What are the legal and practical risks of staying in court?
- Can the dispute benefit from subject-matter expertise?
When used intentionally, Florida arbitration can help parties move beyond gridlock—toward a decision that protects their interests and supports resolution.