Yam Export & Import LLC v. Nicaragua Tobacco Imports, Inc.
Yam appealed the denial of its motion to compel arbitration in a suit brought by Nicaragua Tobacco under a licensing/consignment/lease agreement containing a mandatory AAA arbitration clause. The Third District reversed, holding that whether Yam's alleged financial default waived its arbitration rights under other contract provisions is itself an arbitrable issue for the arbitrator under section 682.02(3), Florida Statutes, and that the trial court's role was limited to deciding whether an arbitration agreement exists and whether the controversy falls within it.
Key facts
- Yam Export & Import LLC appealed a trial court's denial of its motion to compel arbitration in a licensing/consignment/lease agreement dispute brought by Nicaragua Tobacco Imports, Inc.
- The agreement contained a mandatory arbitration clause, and Yam sought to enforce arbitration; Nicaragua Tobacco opposed, arguing Yam waived arbitration rights through financial default under other contract provisions.
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Why it matters
This opinion reinforces the Third District's allocation of gatekeeping authority under the Revised Florida Arbitration Code: contract-based waiver and condition-precedent defenses go to the arbitrator, while courts… — full analysis with a trial
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