Miele v. Prudential Bache Securities

¶5PER CURIAM:

¶6In 1985, Dom and Shirlee Miele established an investment account with Prudential-Bache Securities, Inc. (“Prudential”). The Mieles’ contract with Prudential provided for arbitration of any controversy arising out of or related to the account. After suffering losses over a four year period, the Mieles sought arbitration for Prudential’s refusal to reimburse them. In 1991, the American Arbitration Association (the “AAA”) found for the Mieles, awarding them, among other things, punitive damages in the amount of $266,654.79.1

¶7Upon the Mieles’ filing a confirmation action in the district court, Prudential tendered two checks to the Mieles. One of the checks, representing 60% of the punitive damages award, was made out to the State of Florida General Revenue Fund, pursuant to Fla.Stat. Ann. § 768.73 (1991).2 The other check was made out to the Mieles and covered the balance of the punitive damages award. The Mieles again sought to confirm the arbitration award, contending that they were entitled to the entire punitive damages award because § 768.73(2) did not apply to arbitration awards.3 The district court disagreed, and the Mieles appealed.

¶8We certified the following question to the Florida Supreme Court:

¶9Does Florida Statute § 768.73 apply to arbitration awards? Miele v. Prudential Bache Securities, 986 F.2d 459 (11th Cir.1993). The Florida Supreme Court has now *1316answered that question in the negative. Miele v. Prudential-Bache Securities, Inc., 666 So.2d 470, 473 (Fla.1996). Accordingly, we REVERSE and REMAND to the district court for further proceedings consistent with the Florida Supreme Court’s holding.4