Arbitration Subject to Florida’s Statute of Limitations

The Florida Supreme Court ruled, on May 16, 2013, that arbitration proceedings are subject to Florida’s statutes of limitations set forth in Chapter 95, Florida Statutes.  Raymond James Financial Services, Inc. v. Phillips, 38 Fla. L. Weekly S325 (Fla. May 16, 2013).  Based upon this decision, for example, the five (5) year statute of limitations applicable to judicial actions for breach of a written contract would also apply to the initiation of arbitration.  Thus, if a claimant fails to initiate arbitration within that five (5) year period from the date of the breach, the claim could be barred by the applicable statute of limitations. Additionally, if there is an agreement to arbitrate negligence claims, the failure to begin that arbitration within that four (4) year period from the date it is known or should be known that a claimant was injured by negligence, the claim could be barred as well.  The lesson is that a potential claimant should reach out to an attorney to determine when the limitations period commenced and whether there may be an applicable arbitration provision should such an agreement exist with the potential defendant.