Fake Arbitration: Why Florida's Nonbinding Arbitration Proceudre is Not Arbitration Within the Scope of the Federal Arbitration Act

Does the Federal Arbitration Act (FAA) govern Florida’s nonbinding arbitration procedure? At present, this question is unresolved. As its name suggests, the FAA generally governs arbitration agreements. But the FAA does not define “arbitration,” and the U.S. Courts of Appeals have different standards for what constitutes arbitration under the FAA. This Note discusses those different standards and argues that the Eleventh Circuit provides the most logical test for determining whether a particular dispute resolution procedure is FAA arbitration. Finally, this Note argues that, under the Eleventh Circuit’s standard, Florida’s nonbinding arbitration procedure is not FAA arbitration. INTRODUCTION 1282 I. WHAT IS THE FEDERAL ARBITRATION ACT? 1283 II. WHAT CONSTITUTES “FAA ARBITRATION”? 1284 A. Judicial Interpretations of FAA Arbitration 1285 1. The Eastern District of New York 1286 2. The Third Circuit 1287 3. The Ninth Circuit 1288 4. The Fourth Circuit 1289 5. The Third Circuit Strikes Again 1290 6. The Tenth Circuit 1291 7. The Eleventh Circuit 1291 B. The Plain Meaning of “Arbitration” 1293 C. The Correct Interpretation of FAA Arbitration 1294 III. DOES THE FAA GOVERN FLORIDA’S NONBINDING ARBITRATION? 1295 A. Florida’s Nonbinding Arbitration Procedure 1296 B. The FAA Does Not Govern Florida’s Nonbinding Arbitration Procedure 1298 C. Why All of This Matters 1302 * J.D. 2015, University of Florida Levin College of Law; B.S. 2008, University of Florida. I would like to thank the staff and student editors of the Florida Law Review for their hard work in publishing this Note. I would also like to thank my family and friends for their support in all of my academic endeavors. 1 Daeschsel: Fake Arbitration: Why Florida's Nonbinding Arbitration Proceudre Published by UF Law Scholarship Repository, 2016 1282 FLORIDA LAW REVIEW [Vol. 67 1. The Prevalence of Nonbinding Arbitration in Florida 1302 2. The FAA’s Impact on Enforceability 1303 CONCLUSION 1305