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Federal Contracting, Inc. v. Bimini Shipping, LLC
Citations: 128 So. 3d 904; 2014 A.M.C. 255; 2013 Fla. App. LEXIS 19975; 2013 WL 6644852Docket: No. 3D13-1466
Court: District Court of Appeal of Florida; December 17, 2013; Florida; State Appellate Court
Federal Contracting, Inc. (d/b/a Bryan Construction, Inc.) entered into a shipping contract with Bimini Shipping, LLC, which included a broad arbitration clause mandating that all disputes be resolved in Miami-Dade County, Florida. After Bryan alleged that its goods were damaged during shipment, it requested arbitration but received no response, leading Bryan to file a complaint in court to compel arbitration. Bimini moved to dismiss the complaint, claiming it was barred by the one-year statute of limitations under the Carriage of Goods by Sea Act (COGSA), 46 U.S.C. app. 1303. Bryan contended that the limitations defense should be determined by an arbitrator due to the broad arbitration clause. The trial court, however, granted Bimini's motion to dismiss. Florida law favors arbitration, and issues of timeliness are generally to be resolved by the arbitrator. Precedent from O’Keefe Architects, Inc. v. CED Construction Partners, Ltd. established that similar arbitration clauses require arbitration of statute of limitations defenses. Bimini attempted to differentiate its case by arguing that COGSA section 1303 is a statute of repose, which would require the trial court to rule on the motion. However, both Florida courts and federal courts have consistently classified COGSA section 1303 as a statute of limitations. Bimini's previous references to COGSA as a statute of limitation further undermined its argument. Ultimately, the trial court erred by dismissing Bryan's complaint based on the limitations defense. The appellate court reversed the trial court's order and instructed it to grant Bryan’s motion to compel arbitration, allowing Bimini to assert any defenses during the arbitration process.