Material Handling Systems, Inc. v. United Granite Penna, LLC
The Fourth DCA affirmed the county court's denial of Material Handling Systems' petition for attorney fees following an AAA arbitration award. Post-2013 §682.11(2) authorizes arbitrators to decide attorney fee claims if authorized by contract or statute — overriding the old rule requiring express waiver. Because MHS elected to arbitrate all disputes, requested fees in every arbitration filing, and the arbitrator denied all non-awarded claims, MHS's attempt to redirect the fee claim to the trial court was impermissible.
Key facts
- Material Handling Systems, Inc. (MHS) entered into two contracts in 2022 with United Granite Penna, LLC, and United Granite & Quartz, Inc. (collectively, Appellees), each requiring arbitration of all disputes before the AAA and providing that the customer would pay MHS's reasonable attorney's fees.
- When the contracts were breached, MHS filed a statement of claim with the AAA that included a request for attorney's fees; each of MHS's subsequent arbitration submissions, including its final hearing memorandum, also requested attorney's fees.
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Holdings
- The 2013 amendment to §682.11(2) eliminated the pre-amendment rule that required express waiver for arbitrators to decide attorney fee claims. Post-2013, an arbitrator may award fees if…
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Why it matters
Important for commercial contracts with mandatory arbitration and attorney fee provisions. Pre-2013 practice — expressly waiving court jurisdiction over fees to allow arbitrator to decide — is no longer required; but… — full analysis with a trial
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