How to Make a Motion to Compel Arbitration in Florida

Have you been sued over unpaid debt in Florida? You may avoid court by filing a motion to compel arbitration. If granted, you and the debt collector appear before an arbitrator. The arbitrator hears the case and provides a binding ruling.

What Is Arbitration?

Arbitration resolves conflicts outside traditional court proceedings. The parties appear before one or more arbitrators. The matter is resolved with a binding decision.

Arbitration is often cheaper, faster, and more private than litigation. Many people confuse arbitration with mediation. Both processes occur out of court, but mediation doesn’t end in a binding agreement.

The mediator helps parties reach an agreement. The mediator can’t decide the case or force participation.

How Debt Arbitration Works

Debt arbitration is sometimes called debt negotiation or debt settlement. It offers a real-world solution to unrelenting debt disputes. A creditor and client settle the debt out of court for a lesser amount.

An arbitrator presides over the settlement. The process can be initiated by the creditor, client, or through a court order. It usually occurs if several debt collection efforts fail.

Florida state laws handle arbitration cases differently than federal laws. The basic elements for arbitration are:

• An existing contract with an arbitration provision
• A legal dispute within the scope of the arbitration agreement
• The party intends to use arbitration to settle the dispute
• The location of the arbitration tribunal, often mentioned in the arbitration clause
• Type of court to pursue the tribunal, either state or federal court

You need to understand what each law says about your specific arbitration type. Our partner Solo can help you navigate these procedures when facing a debt lawsuit.

How to Make a Motion to Compel Arbitration in Florida

Follow these steps once you’ve collected the information needed for arbitration.

1. Draft a Petition Compelling for an Arbitration

State all the facts about the dispute and your arbitration intentions. The petition should include:

• The text of the arbitration agreement
• A request for an arbitration order for the other party
• Identities of the parties in the lawsuit
• Notice of hearing
• The court’s jurisdiction over the lawsuit
• Your signature

2. File the Petition

File the original petition with the court’s clerk personally or through your lawyer. You may be required to pay filing fees.

3. Schedule the Hearing

A notice of hearing should be filed along with the petition. Honor the five days of notice provided by the Federal Arbitration Act (FAA).

4. Notify the Other Party

You must notify the other party of the arbitration using proper service methods. The notice must include:

• Summons (an order to appear before a judge)
• Copy of the complaint
• Notice of hearing

Our partner Solo can help you properly respond to debt collection lawsuits and file your documents.

5. Attend the Hearing

At the hearing, the judge determines the validity of the arbitration agreement. The judge also reviews the issues presented. If these issues aren’t conflicting, the judge issues an order to compel arbitration.

In the event of a dispute, the case goes to trial. The trial determines whether the agreement is valid. It also checks if either party violates any of the agreements.

Is an Arbitration Decision Final?

The arbitration decision is final and legally binding. The final decision is called an award. It has a similar impact as a jury or judge decision in common court.

After both parties present evidence and arguments, the arbitrator closes the hearings. No further arguments or evidence can be presented. The award is sent to the parties within 14 to 30 days.

Both parties must honor the award. The arbitrator can’t impose authority on either party to obey the award. However, if one party fails to honor the arbitration, the other can proceed to court. The court can confirm the arbitration award.

Advantages of Arbitration Over Litigation

Many debt collectors and their clients settle for arbitration over litigation. The process offers various advantages:

• Cost-Effective. Arbitration is often cheaper because it’s shorter. It eliminates expensive costs of interrogating witnesses and pre-trial processes.
• Privacy. Arbitration proceedings are done privately without public scrutiny.
• Soundness of Judgment. Arbitrators are usually selected by the parties involved. They carry the case from start to finish. In litigation, cases can be assigned to different judges.
• Joinder of Parties. Both parties reach a common agreement. In litigation, the ruling is often in favor of one party over the other.

Being sued for a debt in Florida isn’t the end of the world. You have many options to consider. Knowing what to do and when to do it matters most. Our partner Solo can help you respond to debt lawsuits and compel arbitration in three simple steps.