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Florida Constitution Revision Commission

PUB 700562: Contracts by Charles Tharp

ARTICLE X: MISCELLANEOUS, New Section.

Catchline: The Nullification of Arbitration Clauses in Contracts

 

(a) Definitions.

For the purposes of this section only:

(1) The term "contract" shall represent all financial or civil agreements, either written or verbal, that are recognized as binding under applicable law or judicial precedent in this State or any other State. It shall also apply to binding Terms of Service or Terms of Use agreements for service providers of all types that conduct business in this State, in person or via the internet or other telecommunication devices.

(2) The term "arbitration" applies to the practice of utilizing a neutral third party to settle disputes between two parties involved in a contract or agreement.

(3) The term "arbitration clause" applies to the practice of contractually mandating a consumer of goods or services into an agreement to use an arbitrator to settle disputes, waiving the right to seek recompense in the judicial system as a result. If a consumer of goods or services does not agree to this mandate, a denial of goods or services is either implied or implemented outright.

(5) The term "fees" shall include any and all legal fees, court filing costs, attorney's fees, or other costs associated with judicial action.

(b) Intent. Citizens of the State of Florida shall have the right to be protected as consumers of goods or services provided to them in this State. The State shall recognize that the practice of utilizing contractual arbitration clauses exists in this State, and as such, often requires its citizens to agree to arbitration in order to consume goods or services. While arbitration has many merits, specifically including reducing the strain of settling disputes on our judicial system, the agreement to the use of an arbitrator should be voluntary in this State and chosen at the time of a dispute.  Refusing the use of an arbitrator should not deny access to goods or services for any citizen of this State. This section shall nullify any arbitration requirements in contracts.

(c) Under no circumstances shall a person, government, or entity be denied access to goods or services in this State if they will not agree to the use of arbitration.

(d) Any and all arbitration clauses in contracts shall be null and void.

(e) No part of this section shall imply that the use of arbitration is prohibited as a general practice in this State.