Lee v. Smith Barney, Harris Upham & Co

In Lee v. Smith Barney, Harris Upham & Co., 626 So. 2d 969 (Fla. 2d DCA 1993), the Second District considered and rejected the argument that the FAA preempted section 682.11, Florida Statutes. 626 So. 2d at 970-71. A panel of arbitrators denied all of the Lees' claims and ordered that the parties "bear their own costs and expenses, including attorney's fees." Id. at 970. Smith Barney then sought a modification of the arbitration order in the circuit court, arguing that the arbitrators had no power under Florida law to decide entitlement to attorney's fees, and filed a motion requesting fees. Id. The circuit court agreed and granted fees to Smith Barney. Id. On appeal, the Lees argued that "the Federal Arbitration Act (FAA) grants authority to arbitrators to determine entitlement to attorney fees and that the FAA's provisions supersede or preempt the provisions of the Florida Arbitration Code, which removes attorney's fee questions from the range of arbitrable issues." Id. The Second District recognized "the FAA's arguable preeminence over Florida's arbitration code in circumstances where, as here, interstate commerce is involved," but explained that "'the proper approach is to reconcile 'the operation of both statutory schemes with one another rather than holding one completely ousted.''" Id.