Old Republic Insurance Company, et al. v. Tom Lanier, d/b/a J. T. Lanier & Associates, and Chattawood Insurance Company, Inc., 644 So. 2d 1258


Summary

The court held that, in spite of a state policy against arbitration, the FAA required arbitration under contractual arbitration provisions when the contracts related to interstate commerce. The contract in question was amenable to FAA regulation and, therefore, to mandatory arbitration under the proper conditions. The court next ruled that the FAA provisions were narrowly interpreted, so that mandatory arbitration was required only for disputes as they were specifically contemplated by the arbitration clauses. In the contract in question, the clause required arbitration only for disputes "arising out of" issues contemplated in the contract. The first count of the complaint, which alleged fraud in the inducement to contract, fell within the scope of the contractual arbitration clause, so the trial court erred in refusing to submit that issue to arbitration on the motion by the companies. However, the remainder of the complaint, which alleged conversion of clients and information, was ...