Florida’s 5th District Court of Appeal scrapped a nursing home arbitration agreement because of an unenforceable damage cap contained therein – one that the court said went to the financial heart of the agreement.
In Estate of Novosett v. Arc Villages, the court decided that because this part of the agreement was not enforceable, the entire agreement was unenforceable. That leaves plaintiff free to pursue remedy through the courts, as opposed to being forced to take the case before an arbitrator.
Still, justices asked the Florida Supreme Court to weigh in on whether arbitration could be compelled based on the severability clause of the contract. Continue reading →