Recent Judicial Decisions
Eastern Funding, L.L.C. v. Roman
4003-2795
The appellant, Eastern Funding, LLC sued appellees, Mr. and Mrs. Roman, alleging a breach of contract and breach of guaranty on their lease. Allegedly, Gilda Roman failed to pay the monthly lease payments. Thus, Eastern Funding filed suit to accelerate the remaining payments. Mr. and Mrs. Roman filed a Motion to Dismiss the suit because Easter failed to apply the arbitration clause in their agreement, dictating that arbitration be completed in New York. The Fifteenth Judicial Circuit of Palm Beach County granted the Motion. Consequently, theassignee, Eastern Funding, appealed.
According to a provision in the lease agreement, any dispute arising from the lease must be submitted to binding arbitration with the American Arbitration Association must take place at the agreed location. New York was the arbitration location selected in the contract. Eastern argued that because the arbitration was to take place in a foreign forum, the arbitration clause was not enforceable if one party objected prior to an arbitration award. However, Eastern, a Delaware corporation primarily operating out of New York dealt with the Romans, who were operating out of Florida. The Federal Arbitration act clearly contradicted Eastern's appeal because the lease agreement involved interstate commerce. Cousin's Law Firm's victory reaffirmed that the Federal Arbitration Act is the controlling precedent in interstate commerce arbitration clauses.
