Court Says Arbitrator Must Determine Scope of His Authority

TAMPA, Fla. - A Florida appellate court has vacated an order removing fraud and statutory claims from binding arbitration, upholding a clause in a home construction contract giving the arbitrator the authority to make that ruling. Mercedes Homes Inc. v. Rosario, No. 2D05-3153 (Fla. Ct. App., 2nd Dist.).

Mercedes Homes Inc. appealed a trial court's nonfinal order limiting arbitration of claims by homeowners to breach of contract issues.

Homeowners Noel and Jackqueline Rosario sued Mercedes in Hillsborough County (Fla.) Circuit Court, alleging that defective installation of windows and application of exterior stucco, flashing and paint by the homebuilder led …