In Raymond James Financial Services, Inc. v. Phillips, No. SC11–2513 (Fla. May 16, 2013) (click here for a copy of the opinion), the Florida Supreme Court addressed whether Florida’s statute of limitations applies to an arbitration proceeding. The court engaged in a statutory analysis and found that the relevant Florida statute, which is applicable to any “civil action or proceeding,” covers arbitration proceedings. The court also noted that this statute voids any contract provision that purports to shorten an applicable statute of limitations.
Although the case involved a FINRA arbitration concerning the handling of investments, the case is not limited in application solely to investment arbitration. The Florida Supreme Court observed that arbitration proceedings occur in wide variety of contexts, and the court’s decision involved statutory construction of Florida’s statute of limitations. Other states, however, do allow for arbitration agreements to shorten an applicable statute of limitations period, as long as the shortened period is reasonable. See, e.g, Country Preferred Ins. Co. v. Whitehead, 979 N.E.2d 35 (Ill. 2012).