Solomon Mediation and Arbitration

In Perdido Key Island Resort Development, L.L.P. v. Regions Bank  2012 WL 104464, (Fla. 1st DCA 2012), the court found that the claim to enforce the guaranty of a mortgage was not subject to arbitration, even though a foreclosure of the same mortgage was subject to arbitration.  In Perdido, a promissory note contained a “narrowly drawn” arbitration provision.  Neither the mortgage nor two personal guarantees contained any such provision.  However, the mortgage – unlike the guarantees -- explicitly incorporated all of the terms of the promissory note “as though set forth fully herein.”  In addition, the parties to the mortgage (but not the guarantees) were identical to the parties to the note.  The court acknowledged that its holdingwould result in arbitrable as well as non-arbitrable causes of action, but noted that the U.S. Supreme Court had affirmed the separation of such claims in KPMG LLP v. Cocchi,132 S. Ct. 23 (2011).  For the full case, click here.