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Morse Operations, Inc. v. Sonar Radio Corp.

Citations: 449 So. 2d 1002; 1984 Fla. App. LEXIS 13174Docket: No. 83-2772

Court: District Court of Appeal of Florida; May 16, 1984; Florida; State Appellate Court

Narrative Opinion Summary

This case involves a dispute between a car dealership, Morse Operations, Inc., and a buyer, Sonar Radio Corporation, regarding the enforcement of an arbitration clause. The buyer initially signed a buyer’s order for a vehicle, which included an arbitration provision requiring any disputes to be arbitrated in Southeast Florida. Subsequently, the buyer signed an installment sale contract that lacked an arbitration clause. Following issues with the vehicle, the buyer filed a lawsuit in circuit court. The trial court denied the dealership's motion to stay proceedings pending arbitration, ruling that the installment sale contract superseded the buyer's order. On appeal, the dealership argued that the installment contract was merely a financing arrangement and did not override the arbitration agreement in the buyer’s order. The appellate court found in favor of the dealership, granting the petition for writ of certiorari, quashing the trial court's order, and remanding the case for further proceedings consistent with the acknowledgment of the arbitration clause. Judges Anstead and Hersey concurred with this decision, emphasizing the binding nature of the buyer’s order and the arbitration agreement it contained.

Legal Issues Addressed

Arbitration Agreements in Contractual Disputes

Application: The court applied the arbitration clause within the buyer's order, which mandated arbitration in Southeast Florida, overruling the lower court's decision that the installment sale contract superseded the buyer's order.

Reasoning: The trial court denied the petitioner’s motion to stay arbitration, ruling that the installment sale contract superseded the buyer’s order. The court's ruling was found to be unsupported by the record, as it overlooked the agreed-upon arbitration forum in the buyer’s order.

Certiorari Review Standards

Application: The appellate court exercised its jurisdiction to issue a writ of certiorari, finding that the trial court's decision to deny arbitration was not supported by the record.

Reasoning: The petition for writ of certiorari is granted, the trial court's order is quashed, and the case is remanded for further proceedings consistent with the findings.

Supersession of Contracts

Application: The court determined that the installment sale contract did not supersede the buyer’s order, which included the arbitration provision, emphasizing the buyer’s order as encompassing all terms and conditions.

Reasoning: The petitioner contended that the installment sale contract was merely a financing arrangement and should not supersede the buyer’s order. The buyer’s order explicitly stated that it encompasses all terms and conditions and that it would not be binding until accepted by the dealer.