CS/HB 821

1	A bill to be entitled
2	An act relating to international commercial arbitration;
3	amending s. 48.196, F.S.; conforming a reference to
4	changes made by the act; creating s. 684.0001, F.S.;
5	providing a short title; creating s. 684.0002, F.S.;
6	defining the scope of application of the Florida
7	International Commercial Arbitration Act; creating s.
8	684.0003, F.S.; defining terms; providing rules of
9	interpretation for the act; creating s. 684.0004, F.S.;
10	providing intent that the act be applied and interpreted
11	with respect to its purpose; creating s. 684.0005, F.S.;
12	specifying when a written communication is received;
13	creating s. 684.0006, F.S.; specifying circumstances that
14	constitute a waiver of the right to object; creating s.
15	684.0007, F.S.; limiting the ability of a court to
16	intervene in an arbitral proceeding; creating s. 684.0008,
17	F.S.; designating the circuit court in which an
18	arbitration is or will be held as the court that may take
19	certain actions authorized by the act; creating s.
20	684.0009, F.S.; requiring a court to refer matters
21	governed by an arbitration agreement to arbitration;
22	creating s. 684.001, F.S.; authorizing a court to grant an
23	interim measure of protection before or during an arbitral
24	proceeding; creating s. 684.0011, F.S.; authorizing the
25	parties to an arbitration to determine the number of
26	arbitrators; specifying the number of arbitrators for a
27	proceeding if the number of arbitrators is not determined
28	by the parties; creating s. 684.0012, F.S.; specifying
29	procedures for the appointment of an arbitrator; creating
30	s. 684.0013, F.S.; requiring a person who is approached to
31	be an arbitrator to make disclosures relating to conflicts
32	of interest; authorizing the appointment of an arbitrator
33	to be challenged based on a perceived conflict of interest
34	or qualifications; creating s. 684.0014, F.S.; providing
35	procedures to challenge the appointment of an arbitrator;
36	creating s. 684.0015, F.S.; providing for the termination
37	of the mandate of an arbitrator due to failure or
38	impossibility to act; creating s. 684.0016, F.S.;
39	providing a procedure for the appointment of a substitute
40	arbitrator; creating s. 684.0017, F.S.; authorizing an
41	arbitral tribunal to determine its jurisdiction;
42	authorizing a court to determine the jurisdiction of an
43	arbitral tribunal; creating s. 684.0018, F.S.; authorizing
44	an arbitral tribunal to grant an interim measure; creating
45	s. 684.0019, F.S.; specifying conditions under which an
46	interim measure may be granted; creating s. 684.002, F.S.;
47	specifying conditions under which an interim order may be
48	granted to prevent a party from frustrating the purpose of
49	an interim measure; creating s. 684.0021, F.S.; requiring
50	a party to be notified of information relating to an
51	interim measure or preliminary order; requiring that a
52	party be given an opportunity to object to a preliminary
53	order; creating s. 684.0022, F.S.; authorizing an arbitral
54	tribunal to modify, suspend, or terminate an interim
55	measure or preliminary order under certain circumstances;
56	creating s. 684.0023, F.S.; authorizing an arbitral
57	tribunal to require security as a condition of granting an
58	interim measure; requiring security as a condition of
59	granting a preliminary order; creating s. 684.0024, F.S.;
60	requiring certain disclosures as a condition of granting
61	or maintaining an interim measure or preliminary order;
62	creating s. 684.0025, F.S.; providing for liability and an
63	award of costs and damages; creating s. 684.0026, F.S.;
64	providing for the recognition and enforcement of an
65	interim measure by a court; authorizing the court to
66	require security under certain circumstances; creating s.
67	684.0027, F.S.; specifying grounds under which a court may
68	refuse to enforce an interim measure; creating s.
69	684.0028, F.S.; authorizing a court to grant an interim
70	measure; creating s. 684.0029, F.S.; requiring parties to
71	an arbitral proceeding to be treated with equality and
72	given an opportunity to present their cases; creating s.
73	684.003, F.S.; authorizing parties to an arbitration to
74	agree to arbitration procedures; providing default
75	procedures; creating s. 684.0031, F.S.; authorizing
76	parties to an arbitration to agree on the place of
77	arbitration; providing criteria to determine a default
78	location for the arbitration; creating s. 684.0032, F.S.;
79	specifying the date of commencement of an arbitral
80	proceeding; creating s. 684.0033, F.S.; authorizing
81	parties to an arbitration to agree on the language to be
82	used in the proceeding; authorizing the arbitral tribunal
83	to determine the language in the absence of a decision by
84	the parties; creating s. 684.0034, F.S.; providing for the
85	submission of claims and defenses to an arbitral tribunal;
86	creating s. 684.0035, F.S.; providing for the
87	determination of the method by which evidence will be
88	presented before an arbitral proceeding; creating s.
89	684.0036, F.S.; specifying actions that constitute a
90	default by a party to an arbitral proceeding; creating s.
91	684.0037, F.S.; authorizing an arbitral tribunal to
92	appoint an expert and for the parties to question and
93	present other experts to the tribunal's expert, unless
94	otherwise agreed by the parties; creating s. 684.0038,
95	F.S.; authorizing a party or an arbitral tribunal to
96	request the assistance of a court in taking evidence;
97	creating s. 684.0039, F.S.; providing for the choice of
98	law applicable in an arbitral proceeding; creating s.
99	684.004, F.S.; specifying the number of arbitrators who
100	must make a decision, unless specified otherwise by the
101	parties; creating s. 684.0041, F.S.; authorizing the
102	parties to an arbitral proceeding to enter into a
103	settlement that is recorded as an award by the arbitral
104	tribunal; creating s. 684.0042, F.S.; specifying the form
105	and content of an arbitral award; creating s. 684.0043,
106	F.S.; specifying events that terminate or require an
107	arbitral tribunal to terminate an arbitral proceeding;
108	creating s. 684.0044, F.S.; authorizing an arbitral
109	tribunal to correct and interpret an arbitral award or
110	make an additional award under certain conditions;
111	creating s. 684.0045, F.S.; providing judicial immunity to
112	arbitrators acting under ch. 684, F.S.; creating s.
113	684.0046, F.S.; specifying conditions under which a court
114	may set aside an arbitral award; creating s. 684.0047,
115	F.S.; providing for the recognition and enforcement of
116	arbitral awards by a court; creating s. 684.0048, F.S.;
117	specifying grounds under which a court may refuse to
118	recognize or enforce an arbitral award; repealing parts I,
119	II, and III of ch. 684, F.S., which create the Florida
120	International Arbitration Act and provide procedures for
121	the conduct of international arbitrations and authorize
122	court proceedings in connection with such arbitrations;
123	providing an effective date.
124
125	Be It Enacted by the Legislature of the State of Florida:
126
127	Section 1.  Subsection (1) of section 48.196, Florida
128	Statutes, is amended to read:
129	48.196  Service of process in connection with actions under
130	the Florida International Commercial Arbitration Act.-
131	(1)  Any process in connection with the commencement of an
132	action before the courts of this state under chapter 684, the
133	Florida International Commercial Arbitration Act, shall be
134	served:
135	(a)  In the case of a natural person, by service upon:
136	1.  That person;
137	2.  Any agent for service of process appointed in, or
138	pursuant to, any applicable agreement or by operation of any law
139	of this state; or
140	3.  Any person authorized by the law of the jurisdiction
141	where process is being served to accept service for that person.
142	(b)  In the case of any person other than a natural person,
143	by service upon:
144	1.  Any agent for service of process appointed in, or
145	pursuant to, any applicable agreement or by operation of any law
146	of this state;
147	2.  Any person authorized by the law of the jurisdiction
148	where process is being served to accept service for that person;
149	or
150	3.  Any person, whether natural or otherwise and wherever
151	located, who by operation of law or internal action is an
152	officer, business agent, director, general partner, or managing
153	agent or director of the person being served; or
154	4.  Any partner, joint venturer, member or controlling
155	shareholder, wherever located, of the person being served, if
156	the person being served does not by law or internal action have
157	any officer, business agent, director, general partner, or
158	managing agent or director.
159	Section 2.  Section 684.0001, Florida Statutes, is created
160	to read:
161	684.0001  Short title.-This chapter may be cited as the
162	"Florida International Commercial Arbitration Act."
163	Section 3.  Section 684.0002, Florida Statutes, is created
164	to read:
165	684.0002  Scope of application.-
166	(1)  This chapter applies to international commercial
167	arbitration, subject to any agreement in force between the
168	United States of America and any other country or countries.
169	(2)  This chapter, except ss. 684.0009, 684.001, 684.0026,
170	684.0027, 684.0028, 684.0047, and 684.0048, applies only if the
171	place of arbitration is in this state.
172	(3)  An arbitration is international if:
173	(a)  The parties to an arbitration agreement have, at the
174	time of the conclusion of that agreement, their places of
175	business in different countries;
176	(b)  One of the following places is situated outside the
177	country in which the parties have their places of business:
178	1.  The place of arbitration if determined in, or pursuant
179	to, the arbitration agreement; or
180	2.  Any place where a substantial part of the obligations
181	of the commercial relationship are to be performed or the place
182	with which the subject matter of the dispute is most closely
183	connected; or
184	(c)  The parties have expressly agreed that the subject
185	matter of the arbitration agreement relates to more than one
186	country.
187	(4)  For the purposes of subsection (3):
188	(a)  If a party has more than one place of business, the
189	place of business is that which has the closest relationship to
190	the arbitration agreement.
191	(b)  If a party does not have a place of business,
192	reference shall be made to his or her habitual residence.
193	(5)  This chapter does not affect any law that may prohibit
194	a matter from being resolved by arbitration or that specifies
195	the manner in which a specific matter may be submitted or
196	resolved by arbitration.
197	Section 4.  Section 684.0003, Florida Statutes, is created
198	to read:
199	684.0003  Definitions and rules of interpretation.-
200	(1)  As used in this chapter, the term:
201	(a)  "Arbitral tribunal" means a sole arbitrator or panel
202	of arbitrators.
203	(b)  "Arbitration" means any arbitration whether or not
204	administered by a permanent arbitral institution.
205	(c)  "Arbitration agreement" means an agreement by the
206	parties to submit to arbitration all or certain disputes that
207	have arisen or may arise between them in respect of a defined
208	legal relationship, whether contractual or not.
209	(d)  "Court" means a circuit court of this state.
210	(2)  A provision of this chapter, except s. 684.0038, which
211	leaves the parties free to determine a certain issue, includes
212	the right of the parties to authorize a third party, including
213	an institution, to make that determination.
214	(3)  A provision of this chapter which refers to the fact
215	that the parties have agreed or that they may agree to a
216	procedure refers to an agreement of the parties. The agreement
217	includes any arbitration rules referenced in that agreement.
218	(4)  A provision of this chapter, other than in s.
219	684.0036(1) or s. 684.0043(2)(a), which refers to a claim also
220	applies to a counter claim, and a provision that refers to a
221	defense also applies to a defense to such counter claim.
222	Section 5.  Section 684.0004, Florida Statutes, is created
223	to read:
224	684.0004  International origin and general principles.-
225	(1)  This chapter shall be interpreted with regard to its
226	international origin and to the need to promote uniformity in
227	its application and the observance of good faith.
228	(2)  Questions concerning matters governed by this chapter
229	which are not expressly settled pursuant to it shall be settled
230	in conformity with the general principles on which this chapter
231	is based.
232	Section 6.  Section 684.0005, Florida Statutes, is created
233	to read:
234	684.0005  Receipt of written communications.-
235	(1)  Unless otherwise agreed by the parties, a written
236	communication is deemed to be received if it is delivered to the
237	addressee personally or if it is delivered to the addressee's
238	place of business, habitual residence, or mailing address. If
239	one of these locations cannot be found after a reasonable
240	inquiry, the written communication is deemed to be received if
241	it is sent to the addressee's last known place of business,
242	habitual residence, or mailing address by registered letter or
243	any other means that provides a record of the attempt to deliver
244	it. The communication is deemed to be received on the day it is
245	delivered.
246	(2)  This section does not apply to communications in court
247	proceedings.
248	Section 7.  Section 684.0006, Florida Statutes, is created
249	to read:
250	684.0006  Waiver of right to object.-A party waives its
251	right to object if the party proceeds with the arbitration and
252	fails to object without undue delay or within a provided time
253	limit to:
254	(1)  Noncompliance of any provision of this chapter from
255	which the parties may derogate and have not derogated; or
256	(2)  Noncompliance of any requirement under the arbitration
257	agreement.
258	Section 8.  Section 684.0007, Florida Statutes, is created
259	to read:
260	684.0007  Extent of court intervention.-In matters governed
261	by this chapter, a court may not intervene except to the extent
262	authorized by this chapter.
263	Section 9.  Section 684.0008, Florida Statutes, is created
264	to read:
265	684.0008  Court for certain functions of arbitration
266	assistance and supervision.-The functions referenced in ss.
267	684.0012(3) and (4), 684.0014(3), 684.0015, 684.0017(3), and
268	684.0046(2) shall be performed by the circuit court in the
269	county in which the seat of the arbitration is located.
270	Section 10.  Section 684.0009, Florida Statutes, is created
271	to read:
272	684.0009  Arbitration agreement and substantive claim
273	before court.-
274	(1)  A court before which an action is brought in a matter
275	that is the subject of an arbitration agreement shall, if a
276	party so requests not later than when submitting its first
277	statement on the substance of the dispute, refer the parties to
278	arbitration unless it finds that the agreement is null and void,
279	inoperative, or incapable of being performed.
280	(2)  If an action described in subsection (1) has been
281	brought, arbitral proceedings may nevertheless be commenced or
282	continued, and an award may be made, while the issue is pending
283	before the court.
284	Section 11.  Section 684.001, Florida Statues, is created
285	to read:
286	684.001  Arbitration agreement and interim measures by a
287	court.-It is not incompatible with an arbitration agreement for
288	a party to request from a court, before or during arbitral
289	proceedings, an interim measure of protection and for a court to
290	grant such a measure.
291	Section 12.  Section 684.0011, Florida Statutes, is created
292	to read:
293	684.0011  Number of arbitrators.-
294	(1)  The parties may determine the number of arbitrators.
295	(2)  If the parties fail to determine the number of
296	arbitrators, the number of arbitrators shall be three.
297	Section 13.  Section 684.0012, Florida Statutes, is created
298	to read:
299	684.0012  Appointment of arbitrators.-
300	(1)  A person is not precluded by reason of his or her
301	nationality from acting as an arbitrator, unless otherwise
302	agreed by the parties.
303	(2)  The parties may agree on a procedure of appointing the
304	arbitrator or arbitrators, subject to subsections (4) and (5).
305	(3)  Failing such agreement:
306	(a)  In an arbitration having three arbitrators, each party
307	shall appoint one arbitrator, and the two arbitrators thus
308	appointed shall appoint the third arbitrator. If a party fails
309	to appoint the arbitrator within 30 days after receipt of a
310	request to do so from the other party, or if the two arbitrators
311	fail to agree on the third arbitrator within 30 days after their
312	appointment, the appointment shall be made, upon request of a
313	party, by the court specified in s. 684.0008.
314	(b)  In an arbitration having a single arbitrator, if the
315	parties are unable to agree on the arbitrator, the arbitrator
316	shall be appointed, upon request of a party, by the court
317	specified in s. 684.0008.
318	(4)  If, under an appointment procedure agreed upon by the
319	parties:
320	(a)  A party fails to act as required under such procedure;
321	(b)  The parties, or two arbitrators, are unable to reach
322	an agreement under such procedure; or
323	(c)  A third party, including an institution, fails to
324	perform any function entrusted to it under such procedure,
325
326	any party may request the court specified in s. 684.0008 to take
327	the necessary measure, unless the agreement on the appointment
328	procedure provides other means for securing the appointment.
329	(5)  A decision on a matter entrusted by subsection (3) or
330	subsection (4) to the court specified in s. 684.0008 is not
331	appealable. The court, in appointing an arbitrator, shall have
332	due regard to any qualifications required by the arbitrator by
333	the agreement of the parties and to such considerations that are
334	likely to secure the appointment of an independent and impartial
335	arbitrator. In the case of the appointment of a sole or third
336	arbitrator, the court shall take into account the advisability
337	of appointing an arbitrator of a nationality other than those of
338	the parties.
339	Section 14.  Section 684.0013, Florida Statutes, is created
340	to read:
341	684.0013  Grounds for challenge.-
342	(1)  When a person is approached in connection with a
343	possible appointment as an arbitrator, the person must disclose
344	any circumstances likely to give rise to justifiable doubts as
345	to the person's impartiality or independence. An arbitrator,
346	from the time of appointment and throughout the arbitral
347	proceedings, shall disclose any such circumstances to the
348	parties without delay, unless they have already been informed of
349	them by him or her.
350	(2)  An arbitrator may be challenged only if circumstances
351	exist that give rise to justifiable doubts as to the
352	arbitrator's impartiality or independence, or if the arbitrator
353	does not possess qualifications agreed to by the parties. A
354	party may challenge an arbitrator appointed by it, or in whose
355	appointment the party participated, only for reasons of which
356	the party became aware after the appointment was made.
357	Section 15.  Section 684.0014, Florida Statutes, is created
358	to read:
359	684.0014  Challenge procedure.-
360	(1)  The parties may agree on a procedure for challenging
361	an arbitrator, subject to subsection (3).
362	(2)  Failing such agreement, a party who intends to
363	challenge an arbitrator shall, within 15 days after becoming
364	aware of the constitution of the arbitral tribunal or after
365	becoming aware of any circumstance described in s. 684.0013(2),
366	send a written statement of the reasons for the challenge to the
367	arbitral tribunal. Unless the challenged arbitrator withdraws
368	from his or her office or the other party agrees to the
369	challenge, the arbitral tribunal shall decide on the challenge.
370	(3)  If a challenge under any procedure agreed upon by the
371	parties or pursuant to subsection (2) is not successful, the
372	challenging party may request, within 30 days after having
373	received notice of the decision rejecting the challenge, the
374	court specified in s. 684.0008 to decide on the challenge. The
375	decision of the court is not appealable. While such a request is
376	pending, the arbitral tribunal, including the challenged
377	arbitrator, may continue the arbitral proceedings and make an
378	award.
379	Section 16.  Section 684.0015, Florida Statutes, is created
380	to read:
381	684.0015  Failure or impossibility to act.-
382	(1)  If an arbitrator becomes de jure or de facto unable to
383	perform his or her functions or for other reasons fails to act
384	without undue delay, his or her mandate terminates if he or she
385	withdraws from office or if the parties agree on the
386	termination. Otherwise, if a controversy remains concerning any
387	of these grounds, any party may request the court specified in
388	s. 684.0008 to decide on the termination of the mandate. The
389	decision of the court is not appealable.
390	(2)  If, under this section or s. 684.0014(2), an
391	arbitrator withdraws from his or her office or a party agrees to
392	the termination of the mandate of an arbitrator, such actions do
393	not imply the acceptance of the validity of any ground described
394	in this section or in s. 684.0013(2).
395	Section 17.  Section 684.0016, Florida Statutes, is created
396	to read:
397	684.0016  Appointment of substitute arbitrator.-If the
398	mandate of an arbitrator terminates pursuant to s. 684.0014 or
399	s. 684.0015 or because of his or her withdrawal from office for
400	any other reason or because of the revocation of the mandate by
401	agreement of the parties or in any other case of termination of
402	the mandate, a substitute arbitrator shall be appointed pursuant
403	to the rules that applied to the appointment of the arbitrator
404	being replaced.
405	Section 18.  Section 684.0017, Florida Statutes, is created
406	to read:
407	684.0017  Competence of arbitral tribunal to rule on its
408	jurisdiction.-
409	(1)  The arbitral tribunal may rule on its own
410	jurisdiction, including any objections with respect to the
411	existence or validity of the arbitration agreement. For that
412	purpose, an arbitration clause that forms part of a contract
413	shall be treated as an agreement independent of the other terms
414	of the contract. A decision by the arbitral tribunal that the
415	contract is not valid does not entail ipso jure the invalidity
416	of the arbitration clause.
417	(2)  A plea that the arbitral tribunal does not have
418	jurisdiction must be raised not later than the submission of the
419	statement of defense. A party is not precluded from raising such
420	a plea by the fact that the party appointed, or participated in
421	the appointment of, an arbitrator. A plea that the arbitral
422	tribunal is exceeding the scope of its authority must be raised
423	as soon as the matter alleged to be beyond the scope of its
424	authority is raised during the arbitral proceedings. The
425	arbitral tribunal may, in either case, admit a later plea it if
426	considers the delay justified.
427	(3)  The arbitral tribunal may rule on a plea referenced in
428	subsection (2) as a preliminary question or in an award on the
429	merits. If the arbitral tribunal rules as a preliminary question
430	that it has jurisdiction, any party may request, within 30 days
431	after receiving notice of that ruling, that the court specified
432	in s. 684.0008 decide the matter. The decision of the court is
433	not appealable. While such a request is pending, the arbitral
434	tribunal may continue the arbitral proceedings and make an
435	award.
436	Section 19.  Section 684.0018, Florida Statutes, is created
437	to read:
438	684.0018  Power of arbitral tribunal to order interim
439	measures.-Unless otherwise agreed by the parties, the arbitral
440	tribunal may, at the request of a party, grant interim measures.
441	An interim measure is any temporary measure, whether in the form
442	of an award or in another form, by which, at any time before the
443	issuance of the award by which the dispute is finally decided,
444	the arbitral tribunal orders a party to:
445	(1)  Maintain or restore the status quo pending
446	determination of the dispute;
447	(2)  Take action to prevent, or refrain from taking action
448	that is likely to cause, current or imminent harm or prejudice
449	to the arbitral process;
450	(3)  Provide a means of preserving assets out of which a
451	subsequent award may be satisfied; or
452	(4)  Preserve evidence that may be relevant and material to
453	the resolution of the dispute.
454	Section 20.  Section 684.0019, Florida Statutes, is created
455	to read:
456	684.0019  Conditions for granting interim measures.-
457	(1)  The party requesting an interim measure under s.
458	684.0018 must satisfy the arbitral tribunal that:
459	(a)  Harm not adequately reparable by an award of damages
460	is likely to result if the measure is not ordered, and such harm
461	substantially outweighs the harm that is likely to result to the
462	party against whom the measure is directed if the measure is
463	granted; and
464	(b)  A reasonable possibility exists that the requesting
465	party will succeed on the merits of the claim. The determination
466	on this possibility does not affect the discretion of the
467	arbitral tribunal in making any subsequent determination.
468	(2)  With regard to a request for an interim measure under
469	s. 684.0018, the requirements in subsection (1) apply only to
470	the extent the arbitral tribunal considers appropriate.
471	Section 21.  Section 684.002, Florida Statutes, is created
472	to read:
473	684.002  Applications for preliminary orders and conditions
474	for granting preliminary orders.-
475	(1)  Unless otherwise agreed by the parties, a party may,
476	without notice to any other party, make a request for an interim
477	measure together with an application for a preliminary order
478	prohibiting a party from frustrating the purpose of the interim
479	measure requested.
480	(2)  The arbitral tribunal may grant a preliminary order if
481	it considers that prior disclosure of the request for the
482	interim measure to the party against whom it is directed risks
483	frustrating the purpose of the measure.
484	(3)  The conditions described in s. 684.0019 apply to any
485	preliminary order if the harm assessed under s. 684.0019(1)(a)
486	is the harm likely to result from the order being granted or not
487	granted.
488	Section 22.  Section 684.0021, Florida Statutes, is created
489	to read:
490	684.0021  Specific regime for preliminary orders.-
491	(1)  Immediately after the arbitral tribunal makes a
492	determination in respect of an application for a preliminary
493	order, the arbitral tribunal shall give notice to all parties of
494	the request for the interim measure, the application for the
495	preliminary order, the preliminary order, if any, and all other
496	communications. The notice shall include a description of the
497	content of any oral communication between any party and the
498	arbitral tribunal in relation to any such request or
499	application.
500	(2)  At the same time, the arbitral tribunal shall give an
501	opportunity to any party against whom a preliminary order is
502	directed to present its case at the earliest practicable time.
503	(3)  The arbitral tribunal must decide promptly on any
504	objection to the preliminary order.
505	(4)  A preliminary order expires 20 days after the date on
506	which it was issued by the arbitral tribunal. However, the
507	arbitral tribunal may issue an interim measure adopting or
508	modifying the preliminary order after the party against whom the
509	preliminary order is directed is given notice and an opportunity
510	to present its case.
511	(5)  A preliminary order is binding on the parties but is
512	not enforceable by a court. Such a preliminary order does not
513	constitute an award.
514	Section 23.  Section 684.0022, Florida Statutes, is created
515	to read:
516	684.0022  Modification, suspension, or termination; interim
517	measure or preliminary order.-The arbitral tribunal may modify,
518	suspend, or terminate an interim measure or a preliminary order
519	it has granted upon application of any party or, in exceptional
520	circumstances and upon prior notice to the parties, on the
521	arbitral tribunal's own initiative.
522	Section 24.  Section 684.0023, Florida Statutes, is created
523	to read:
524	684.0023  Provision of security.-
525	(1)  The arbitral tribunal may require the party requesting
526	an interim measure to provide appropriate security in connection
527	with the measure.
528	(2)  The arbitral tribunal shall require the party applying
529	for a preliminary order to provide security in connection with
530	the order unless the arbitral tribunal considers it
531	inappropriate or unnecessary to do so.
532	Section 25.  Section 684.0024, Florida Statutes, is created
533	to read:
534	684.0024  Disclosure.-
535	(1)  The arbitral tribunal may require any party promptly
536	to disclose any material change in the circumstances on the
537	basis of which the interim measure was requested or granted.
538	(2)  The party applying for a preliminary order shall
539	disclose to the arbitral tribunal all circumstances that are
540	likely to be relevant to the arbitral tribunal's determination
541	whether to grant or maintain the order, and such obligation
542	continues until the party against whom the order has been
543	requested has had an opportunity to present its case.
544	Thereafter, subsection (1) applies.
545	Section 26.  Section 684.0025, Florida Statutes, is created
546	to read:
547	684.0025  Costs and damages.-The party requesting an
548	interim measure or applying for a preliminary order is liable
549	for any costs and damages caused by the measure or the order to
550	any party if the arbitral tribunal later determines that the
551	measure or the order should not have been granted. The arbitral
552	tribunal may award such costs and damages at any point during
553	the proceedings.
554	Section 27.  Section 684.0026, Florida Statutes, is created
555	to read:
556	684.0026  Recognition and enforcement.-
557	(1)  An interim measure issued by an arbitral tribunal
558	shall be recognized as binding and, unless otherwise provided by
559	the arbitral tribunal, enforced upon application to the
560	competent court, irrespective of the country in which it was
561	issued, subject to s. 684.0019(1).
562	(2)  The party who is seeking or has obtained recognition
563	or enforcement of an interim measure shall promptly inform the
564	court of the termination, suspension, or modification of the
565	interim measure.
566	(3)  The court where recognition or enforcement is sought
567	may, if it considers it proper, order the requesting party to
568	provide appropriate security if the arbitral tribunal has not
569	already made a determination with respect to security or if such
570	a decision is necessary to protect the rights of third parties.
571	Section 28.  Section 684.0027, Florida Statutes, is created
572	to read:
573	684.0027  Grounds for refusing recognition or enforcement.-
574	(1)  Recognition or enforcement of an interim measure may
575	be refused only:
576	(a)  At the request of the party against whom it is invoked
577	if the court is satisfied that:
578	1.  Such refusal is warranted on the grounds set forth in
579	s. 684.0048(1)(a)1., 2., 3., or 4.;
580	2.  The arbitral tribunal's decision with respect to the
581	provision of security in connection with the interim measure
582	issued by the arbitral tribunal has not been complied with; or
583	3.  The interim measure was terminated or suspended by the
584	arbitral tribunal or, if so empowered, by the court of the state
585	or country in which the arbitration takes place or under the law
586	of which that interim measure was granted; or
587	(b)  If the court finds that:
588	1.  The interim measure is incompatible with the powers
589	conferred upon the court, unless the court decides to
590	reformulate the interim measure to the extent necessary to adapt
591	it to its own powers and procedures for the purpose of enforcing
592	that interim measure and without modifying its substance; or
593	2.  Any of the grounds set forth in s. 684.0048(1)(b)1. or
594	2. apply to the recognition and enforcement of the interim
595	measure.
596	(2)  A determination made by the court on any ground in
597	subsection (1) is effective only for the purposes of the
598	application to recognize and enforce the interim measure. The
599	court may not in making that determination undertake a review of
600	the substance of the interim measure.
601	Section 29.  Section 684.0028, Florida Statutes, is created
602	to read:
603	684.0028  Court-ordered interim measures.-A court has the
604	same power of issuing an interim measure in relation to
605	arbitration proceedings, irrespective of whether the arbitration
606	proceedings are held in this state, as it has in relation to the
607	proceedings in courts. The court shall exercise such power in
608	accordance with its own procedures and in consideration of the
609	specific features of international arbitration.
610	Section 30.  Section 684.0029, Florida Statutes, is created
611	to read:
612	684.0029  Equal treatment of parties.-The parties shall be
613	treated with equality and each party shall be given a full
614	opportunity of presenting its case.
615	Section 31.  Section 684.003, Florida Statutes, is created
616	to read:
617	684.003  Determination of rules of procedure.-Subject to
618	the provisions of this chapter, the parties may agree on the
619	procedure to be followed by the arbitral tribunal in conducting
620	the proceedings. Failing such agreement, the arbitral tribunal
621	may, subject to the provisions of this chapter, conduct the
622	arbitration in such manner as it considers appropriate. The
623	power conferred upon the arbitral tribunal includes the power to
624	determine the admissibility, relevance, materiality, and weight
625	of evidence.
626	Section 32.  Section 684.0031, Florida Statutes, is created
627	to read:
628	684.0031  Place of arbitration.-
629	(1)  The parties may agree on the place of arbitration.
630	Failing such agreement, the place of arbitration shall be
631	determined by the arbitral tribunal having regard to the
632	circumstances of the case, including the convenience of the
633	parties.
634	(2)  Notwithstanding subsection (1), the arbitral tribunal
635	may, unless otherwise agreed by the parties, meet at any place
636	it considers appropriate for consultation among its members, for
637	hearing witnesses, experts, or the parties, or for inspection of
638	goods, other property, or documents.
639	Section 33.  Section 684.0032, Florida Statutes, is created
640	to read:
641	684.0032  Commencement of arbitral proceedings.-Unless
642	otherwise agreed by the parties, the arbitral proceedings in
643	respect of a particular dispute commence on the date on which a
644	request for that dispute to be referred to an arbitration is
645	received by the respondent.
646	Section 34.  Section 684.0033, Florida Statutes, is created
647	to read:
648	684.0033  Language.-
649	(1)  The parties may agree on the language or languages to
650	be used in the arbitral proceedings. Failing such agreement, the
651	arbitral tribunal shall specify the language or languages to be
652	used in the proceedings. This agreement or determination, unless
653	otherwise specified therein, applies to any written statement by
654	a party, any hearing, and any award, decision, or other
655	communication by the arbitral tribunal.
656	(2)  The arbitral tribunal may order that any documentary
657	evidence be accompanied by a translation into the language or
658	languages agreed upon by the parties or specified by the
659	arbitral tribunal.
660	Section 35.  Section 684.0034, Florida Statutes, is created
661	to read:
662	684.0034  Statements of claim and defense.-
663	(1)  Within the period of time agreed by the parties or
664	specified by the arbitral tribunal, the claimant shall state the
665	facts supporting its claim, the points at issue, and the relief
666	or remedy sought, and the respondent shall state its defense to
667	the claim, unless the parties have otherwise agreed as to the
668	required elements of such statements. The parties may submit
669	with their statements all documents they consider to be relevant
670	or may add a reference to the documents or other evidence they
671	will submit.
672	(2)  Unless otherwise agreed by the parties, either party
673	may amend or supplement its claim or defense during the course
674	of the arbitral proceedings, unless the arbitral tribunal
675	considers it inappropriate to allow such amendment having regard
676	to the delay in making it.
677	Section 36.  Section 684.0035, Florida Statutes, is created
678	to read:
679	684.0035  Hearings and written proceedings.-
680	(1)  Subject to any contrary agreement by the parties, the
681	arbitral tribunal shall decide whether to hold oral hearings for
682	the presentation of evidence or for oral argument, or whether
683	the proceedings shall be conducted on the basis of documents and
684	other materials. However, unless the parties have agreed that no
685	hearings will be held, the arbitral tribunal shall hold such
686	hearings at an appropriate stage of the proceedings, if so
687	requested by a party.
688	(2)  The parties shall be given sufficient advance notice
689	of any hearing and of any meeting of the arbitral tribunal for
690	the purposes of inspection of goods, other property, or
691	documents.
692	(3)  All statements, documents, or other information
693	supplied to the arbitral tribunal by one party shall be provided
694	to the other party. Also, any expert report or evidentiary
695	document on which the arbitral tribunal may rely in making its
696	decision shall be provided to the parties.
697	Section 37.  Section 684.0036, Florida Statutes, is created
698	to read:
699	684.0036  Default of a party.-Unless otherwise agreed by
700	the parties, if, without showing sufficient cause:
701	(1)  The claimant fails to provide its statement of claim
702	pursuant to s. 684.0034(1), the arbitral tribunal shall
703	terminate the proceedings.
704	(2)  The respondent fails to communicate its statement of
705	defense pursuant to s. 684.0034(1), the arbitral tribunal shall
706	continue the proceedings without treating such failure in itself
707	as an admission of the claimant's allegations.
708	(3)  A party fails to appear at a hearing or to produce
709	documentary evidence, the arbitral tribunal may continue the
710	proceedings and make the award on the evidence before it.
711	Section 38.  Section 684.0037, Florida Statutes, is created
712	to read:
713	684.0037  Expert appointed by arbitral tribunal.-
714	(1)  Unless otherwise agreed by the parties, the arbitral
715	tribunal may:
716	(a)  Appoint one or more experts to report to it on
717	specific issues to be determined by the arbitral tribunal.
718	(b)  Require a party to give the expert any relevant
719	information or produce or provide access to any relevant
720	documents, goods, or other property for inspection by the
721	expert.
722	(2)  Unless otherwise agreed by the parties, if a party so
723	requests or if the arbitral tribunal considers it necessary, the
724	expert shall, after delivery of a written or oral report,
725	participate in a hearing in which the parties have the
726	opportunity to question the expert and to present expert
727	witnesses in order to testify on the points at issue.
728	Section 39.  Section 684.0038, Florida Statutes, is created
729	to read:
730	684.0038  Court assistance in taking evidence.-The arbitral
731	tribunal, or a party upon the approval of the arbitral tribunal,
732	may request assistance in taking evidence from a competent court
733	of this state. The court may execute the request within its
734	competence and according to its rules on taking evidence.
735	Section 40.  Section 684.0039, Florida Statutes, is created
736	to read:
737	684.0039  Rules applicable to substance of dispute.-
738	(1)  The arbitral tribunal shall decide the dispute
739	pursuant to the rules of law chosen by the parties to apply to
740	the substance of the dispute. Any designation of the law or
741	legal system of a state or country shall be construed, unless
742	otherwise expressed, as directly referring to the substantive
743	law of that state or country and not to its conflict-of-laws
744	rule.
745	(2)  Failing any designation by the parties, the arbitral
746	tribunal shall apply the law determined by the conflict-of-laws
747	rules that it considers applicable.
748	(3)  The arbitral tribunal shall decide ex aequo et bono or
749	as amiable compositeur, only if the parties have expressly
750	authorized it to do so.
751	(4)  In all cases, the arbitral tribunal shall decide in
752	accordance with the terms of the contract and shall take into
753	account the usages of the trade which apply to the transaction.
754	Section 41.  Section 684.004, Florida Statutes, is created
755	to read:
756	684.004  Decisionmaking by panel of arbitrators.-In
757	arbitral proceedings having more than one arbitrator, any
758	decision of the arbitral tribunal shall be made, unless
759	otherwise agreed by the parties, by a majority of all its
760	members. However, questions of procedure may be decided by a
761	presiding arbitrator, if so authorized by the parties or all
762	members of the arbitral tribunal.
763	Section 42.  Section 684.0041, Florida Statutes, is created
764	to read:
765	684.0041  Settlement.-
766	(1)  If, during arbitral proceedings, the parties settle
767	the dispute, the arbitral tribunal shall terminate the
768	proceedings and, if requested by the parties and not objected to
769	by the arbitral tribunal, record the settlement in the form of
770	an arbitral award on agreed terms.
771	(2)  An award on agreed terms shall be made pursuant to s.
772	684.0042 and shall state that it is an award. Such an award has
773	the same status and effect as any other award on the merits of
774	the case.
775	Section 43.  Section 684.0042, Florida Statutes, is created
776	to read:
777	684.0042  Form and contents of award.-
778	(1)  The award shall be made in writing and shall be signed
779	by the arbitrator or arbitrators. In arbitral proceedings having
780	more than one arbitrator, the signatures of the majority of all
781	members of the arbitral tribunal shall suffice, if the reason
782	for any omitted signature is stated.
783	(2)  The award shall state the reasons upon which it is
784	based, unless the parties have agreed that no reasons are to be
785	given or the award is an award on agreed terms under s.
786	684.0041.
787	(3)  The award shall state its date and the place of
788	arbitration as determined pursuant to s. 684.0031(1). The award
789	shall be deemed to have been made at that place.
790	(4)  After the award is made, a copy signed by the
791	arbitrators pursuant to subsection (1) shall be delivered to
792	each party.
793	Section 44.  Section 684.0043, Florida Statutes, is created
794	to read:
795	684.0043  Termination of proceedings.-
796	(1)  Arbitral proceedings are terminated by the final award
797	or by an order of the arbitral tribunal pursuant to subsection
798	(2).
799	(2)  The arbitral tribunal shall issue an order for the
800	termination of the arbitral proceedings when:
801	(a)  The claimant withdraws its claim, unless the
802	respondent objects to the withdrawal of the claim and the
803	arbitral tribunal recognizes that the respondent has a
804	legitimate interest in obtaining a final settlement of the
805	dispute;
806	(b)  The parties agree on the termination of the
807	proceedings; or
808	(c)  The arbitral tribunal finds that the continuation of
809	the proceedings has for any other reason become unnecessary or
810	impossible.
811	(3)  The mandate of the arbitral tribunal terminates with
812	the termination of the arbitral proceedings, subject to ss.
813	684.0044 and 684.0046(4).
814	Section 45.  Section 684.0044, Florida Statutes, is created
815	to read:
816	684.0044  Correction and interpretation of award;
817	additional award.-
818	(1)(a)  Within 30 days after receipt of the award, unless
819	another period of time has been agreed upon by the parties:
820	1.  A party, with notice to the other party, may request
821	the arbitral tribunal to correct in the award any errors in
822	computation, any clerical or typographical errors, or any errors
823	of similar nature.
824	2.  If so agreed by the parties, a party, with notice to
825	the other party, may request the arbitral tribunal to give an
826	interpretation of a specific point or part of the award.
827	(b)  If the arbitral tribunal considers the request to be
828	justified, it shall make the correction or give the
829	interpretation within 30 days after the request. The
830	interpretation becomes part of the award.
831	(2)  The arbitral tribunal may correct any error described
832	in subparagraph (1)(a)1. on its own initiative within 30 days
833	after the date of the award.
834	(3)  Unless otherwise agreed by the parties, a party, with
835	notice to the other party, may request, within 30 days after the
836	receipt of the award, the arbitral tribunal to make an
837	additional award as to claims presented in the arbitral
838	proceedings but omitted from the award. If the arbitral tribunal
839	considers the request to be justified, it shall make the
840	additional award within 60 days after the request.
841	(4)  The arbitral tribunal may extend, if necessary, the
842	period of time within which it shall make a correction,
843	interpretation, or additional award pursuant to subsection (1)
844	or subsection (3).
845	(5)  Section 684.0042, specifying the form and contents of
846	an award, applies to a correction or interpretation of the award
847	or to an additional award.
848	Section 46.  Section 684.0045, Florida Statutes, is created
849	to read:
850	684.0045  Immunity for arbitrators.-An arbitrator serving
851	under this chapter shall have judicial immunity in the same
852	manner and to the same extent as a judge.
853	Section 47.  Section 684.0046, Florida Statutes, is created
854	to read:
855	684.0046  Application to set aside as exclusive recourse
856	against arbitral award.-
857	(1)  Recourse to a court against an arbitral award may be
858	made only by an application to set aside an arbitral award
859	pursuant to subsections (2) and (3).
860	(2)  An arbitral award may be set aside by the court
861	specified in s. 684.0008 only if:
862	(a)  The party making the application furnishes proof that:
863	1.  A party to the arbitration agreement defined in s.
864	684.0003(1)(c) was under some incapacity or the arbitration
865	agreement is not valid under the law to which the parties have
866	subjected it or, failing any indication thereon, under the law
867	of this state;
868	2.  The party making the application was not given proper
869	notice of the appointment of an arbitrator or of the arbitral
870	proceedings or was otherwise unable to present its case;
871	3.  The award deals with a dispute not contemplated by or
872	not falling within the terms of the submissions to arbitration,
873	or contains decisions on matters beyond the scope of the
874	submission to arbitration. However, if the decisions on matters
875	submitted to arbitration can be separated from those not so
876	submitted, only that part of the award which contains decisions
877	on matters not submitted to arbitration may be set aside; or
878	4.  The composition of the arbitral tribunal or the
879	arbitral procedure was not in accordance with the agreement of
880	the parties, unless such agreement was in conflict with a
881	provision of this chapter from which the parties may not
882	derogate, or, failing such agreement, was not in accordance with
883	this chapter; or
884	(b)  The court finds that:
885	1.  The subject matter of the dispute is not capable of
886	settlement by arbitration under the law of this state; or
887	2.  The award is in conflict with the public policy of this
888	state.
889	(3)  An application to set aside an arbitral award may not
890	be made after 3 months have elapsed after the date on which the
891	party making that application receives the award or, if a
892	request had been made under s. 684.0044, after 3 months have
893	elapsed after the date on which that request had been disposed
894	of by the arbitral tribunal.
895	(4)  The court, when asked to set aside an award, may, if
896	appropriate and so requested by a party, suspend the proceedings
897	to set aside the award for a period of time determined by it in
898	order to give the arbitral tribunal an opportunity to resume the
899	arbitral proceedings or to take such other action as in the
900	arbitral tribunal's opinion will eliminate the grounds to set
901	aside the award.
902	Section 48.  Section 684.0047, Florida Statutes, is created
903	to read:
904	684.0047  Recognition and enforcement.-
905	(1)  An arbitral award, irrespective of the country in
906	which it was made, shall be recognized as binding and, upon
907	application in writing to the competent court, shall be enforced
908	subject to this section and s. 684.0048.
909	(2)  The party relying on an award or applying for its
910	enforcement shall supply the original or copy of the award. If
911	the award is not made in the English language, the court may
912	request the party to supply a translation of the award.
913	Section 49.  Section 684.0048, Florida Statutes, is created
914	to read:
915	684.0048  Grounds for refusing recognition or enforcement.-
916	(1)  Recognition or enforcement of an arbitral award,
917	irrespective of the country in which it was made, may be refused
918	only:
919	(a)  At the request of the party against whom it is
920	invoked, if that party furnishes to the competent court where
921	recognition or enforcement is sought proof that:
922	1.  A party to the arbitration agreement defined in s.
923	684.0003(1)(c) was under some incapacity or the arbitration
924	agreement is not valid under the law to which the parties have
925	subjected it or, failing any indication thereon, under the law
926	of the country where the award was made;
927	2.  The party against whom the award is invoked was not
928	given proper notice of the appointment of an arbitrator or of
929	the arbitral proceedings or was otherwise unable to present its
930	case;
931	3.  The award deals with a dispute not contemplated by or
932	not falling within the terms of the submission to arbitration,
933	or it contains decisions on matters beyond the scope of the
934	submission to arbitration. However, if the decisions on matters
935	submitted to arbitration can be separated from those not so
936	submitted, that part of the award which contains decisions on
937	matters submitted to arbitration may be recognized and enforced;
938	4.  The composition of the arbitral tribunal or the
939	arbitral procedure was not in accordance with the agreement of
940	the parties or, failing such agreement, was not in accordance
941	with the law of the country where the arbitration took place; or
942	5.  The award has not yet become binding on the parties or
943	has been set aside or suspended by a court of the country in
944	which, or under the law of which, that award was made; or
945	(b)  If the court finds that:
946	1.  The subject matter of the dispute is not capable of
947	settlement by arbitration under the laws of this state; or
948	2.  The recognition or enforcement of the award would be
949	contrary to the public policy of this state.
950	(2)  If an application for setting aside or suspension of
951	an award has been made to a court referenced in subparagraph
952	(1)(a)5., the court where recognition or enforcement is sought
953	may, if it considers it proper, adjourn its decision and may
954	also, on the application of the party claiming recognition or
955	enforcement of the award, order the other party to provide
956	appropriate security.
957	Section 50.  Parts I, II, and III of chapter 684, Florida
958	Statutes, consisting of sections 684.01, 684.02, 684.03, 684.04,
959	684.05, 684.06, 684.07, 684.08, 684.09, 684.10, 684.11, 684.12,
960	684.13, 684.14, 684.15, 684.16, 684.17, 684.18, 684.19, 684.20,
961	684.21, 684.22, 684.23, 684.24, 684.25, 684.26, 684.27, 684.28,
962	684.29, 684.30, 684.31, 684.32, 684.33, 684.34, and 684.35, are
963	repealed.
964	Section 51.  This act shall take effect July 1, 2010.

CODING: Words stricken are deletions; words underlined are additions.