BREA 3-2 LLC v. Hagshama Florida 8 Sarasota, LLC
The Third District reversed orders compelling arbitration in New York and dismissing usury-based claims, holding that an arbitration clause covering "any dispute under this Agreement" is narrow, not broad, and does not reach statutory usury claims because the duty not to commit usury arises from Florida statute and public policy, not from the parties' unique contractual relationship. The court explained that Buckeye Check Cashing, read together with Granite Rock, addresses only severability of the arbitration clause and does not dispense with the threshold judicial task of deciding whether the dispute falls within the clause's scope. It also held the forum selection clause was permissive, not mandatory, and that the choice-of-law ruling was premature.
Key facts
- BREA 3-2 LLC and Hagshama Florida 8 Sarasota, LLC disputed whether certain claims, including statutory usury claims, were subject to an arbitration clause requiring arbitration of 'any dispute under this Agreement.'
- The trial court compelled arbitration in New York and dismissed the usury-based claims; BREA 3-2 LLC appealed.
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Why it matters
This is a clear, citable roadmap for distinguishing narrow ("arising under") from broad ("arising out of or relating to") arbitration clauses and for rebutting the common defense argument that Buckeye requires all… — full analysis with a trial
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