When you engage in a legal dispute in Florida, the court may refer you to nonbinding arbitration. This is an alternative dispute resolution process that courts are increasingly using. Nonbinding arbitration can sometimes provide a quicker resolution to disputes without the formality of a trial. Since the outcome is nonbinding, either party can request a court trial if they disagree with the arbitrator’s decision.
However, this process includes a critical deadline that, if missed, can significantly affect the final outcome of your case.
What is nonbinding arbitration?
Nonbinding arbitration involves an arbitrator (or a panel of arbitrators) who listens to evidence about the dispute and makes a decision on the outcome much as a judge would do. The parties can schedule the arbitration right away instead of waiting for the court to have an opening. Arbitration is generally less formal than court, with fewer procedural hurdles.
As the name suggests, the arbitrator’s decision is initially nonbinding, meaning it does not have to be the final say in the matter. Either party can reject the arbitrator’s decision and seek a traditional court trial, if they believe that is in their best interest.
The critical role of requesting a trial by the deadline
Under Florida’s statute, Title V. Judicial Branch § 44.103, a party who is dissatisfied with an arbitration result can request a trial de novo — a new trial in court.
The party’s lawyer must make this request, however, within the time allowed by the Supreme Court of Florida, which is currently 20 days after the arbitrator’s decision.
Filing this request within that time is crucial. If neither party files for a trial de novo within this timeframe, the arbitrator’s decision becomes binding. A binding arbitration award is enforceable as a court judgment. The parties are required to comply with the order or face contempt of court proceedings.
The consequences of missing the deadline
Missing this 20-day deadline can have serious implications. For example, consider a scenario where an individual loses in arbitration and faces a significant financial award against them. If their attorney fails to request a trial de novo within the 20-day period, that arbitration award becomes final and binding. The client is then obligated to comply with that award and has lost any opportunity to challenge or change the outcome through the courts.
This situation could be likened to an attorney failing to file a lawsuit within the statute of limitations period. It results in the client losing their legal rights due to the lawyer’s procedural oversight. Such an error can leave clients surprised because they relied on the arbitration being nonbinding. In some cases, missing the deadline may be legal malpractice.
Legal malpractice may arise from this type of error
Clients depend on their attorneys to know the relevant deadlines and follow all legal procedures diligently. Failing to meet critical deadlines like requesting a trial de novo may constitute legal malpractice, if it adversely affects the client’s position and causes financial or other substantive harm.
If you find yourself negatively impacted by a lawyer’s oversight, it may be time to consult with a legal malpractice attorney who understands these issues and can offer guidance on possible next steps.
Get more information
If your attorney failed to timely request a trial de novo after arbitration, or if you have concerns about how your case was handled in nonbinding arbitration, discuss your situation with a knowledgeable legal malpractice lawyer.
Each case has its unique circumstances, and consulting with someone experienced in this legal area will help you understand your rights and options moving forward.