Justia Arbitration & Mediation Opinion Summaries

The Supreme Court affirmed the order of the circuit court denying Lender’s application to compel arbitration and stay proceedings on the claims brought by Borrower, holding that the plain language of the parties’ arbitration agreement showed they agreed to arbitrate before a specified, but unavailable, arbitrator and no other arbitrator.The contracts between the parties contained an arbitration agreement stating that any dispute between the parties shall be resolved by binding arbitration by the National Arbitration Forum (NAF). Thereafter, NAF entered into a consent decree requiring it immediately to stop providing arbitration services for consumer claims nationwide. After Borrower defaulted, Lender filed suit. Borrower counterclaimed. Lender moved to compel arbitration on Borrower’s counterclaim and asked the circuit court to designate a new arbitrator where NAF was unavailable as an arbitrator. The circuit court denied Lender's application. The Supreme Court affirmed, holding that because Lender made the choice to insist upon NAF, and only NAF, as the arbitration forum, Lender could not now expand the arbitration promise it extracted from Borrower in the agreement. View "A-1 Premium Acceptance, Inc. v. Hunter" on Justia Law

The Supreme Court declined to grant mandamus relief to the Regional Convention and Sports Complex Authority, which sought a writ to compel the circuit court to stay arbitration of the Authority’s claims in its petition for a declaratory judgment and to reinstate the cause on the circuit court’s docket.The Authority, which leased a training facility to the St. Louis Rams, LLC, filed a three-count petition for declaratory judgment against the Rams seeking to void provisions in the lease. The Rams filed a motion to compel arbitration, asserting that the Authority’s claims fell within the scope of the lease’s arbitration provisions. The circuit court sustained the Rams’ motion to compel arbitration. In this original action, the Supreme Court held that the parties’ intent to arbitrate disputes involving the lease was clear and that any doubt as to arbitrability must be resolved in favor of the application of the arbitration clause. View "State ex rel. Regional Convention & Sports Complex Authority v. Honorable Michael D. Burton" on Justia Law

Steven Pinkerton sought a writ of mandamus or prohibition requiring the circuit court to overrule a motion to compel arbitration filed by the Aviation Institute of Maintenance (the school). After Pinkerton graduated from the school and received his temporary airman certificate from the federal aviation administration and was still unable to find employment in the aviation field, Pinkerton sued the school. The circuit court sustained the school’s motion to compel arbitration. On appeal, Pinkerton argued that the circuit court erred in sustaining the school’s motion to compel arbitration due to issues surrounding the provision that the parties agreed to delegate threshold issues of arbitrability to the arbitrator. The Supreme Court ruled that the circuit court properly sustained the school’s motion to compel arbitration, holding (1) the arbitration agreement clear and unmistakably evidenced the parties’ intent to delegate threshold issues of arbitrability to the arbitrator; and (2) because Pinkerton’s only specific challenge to the delegation provision was without merit, the delegation provision was valid and enforceable. View "State ex rel. Pinkerton v. Honorable Joel P. Fahnestock" on Justia Law

In 1998, 52 U.S. states and territories entered into the Master Settlement Agreement (MSA) with tobacco manufacturers (PMs), which released the PMs from tobacco-related consumer protection and product liability lawsuits in return for the PMs’ agreement to make annual payments to the states in perpetuity. This dispute concerned the application of the Non-Participating Manufacturer Adjustment (NPM Adjustment), a provision in the MSA that reduces the amount the PMs must pay to states that failed diligently to enforce certain legislation during a relevant year. PMs, Missouri, and other states arbitrated the dispute. More than twenty states and the PMs entered into a partial settlement agreement, but Missouri and other states did not join the settlement. The arbitration panel found that Missouri was not diligent in enforcing its legislative enactment and that the NPM Adjustment applied. Missouri sought relief. The trial court overruled Missouri’s motion to compel the PMS to engage in a single-state arbitration with Missouri over another dispute regarding application of the NPM Adjustment in a subsequent year but modified the award as requested by Missouri. The Supreme Court affirmed, holding (1) the trial court correctly refused to compel single-state arbitration; and (2) the trial court did not err in modifying the panel’s award. View "State ex rel. Greitens v. American Tobacco Co." on Justia Law

In 2013, Plaintiff purchased a new car from Defendant. In 2014, Plaintiff filed the underlying petition for damages, alleging that Defendant violated the Missouri Merchandising Practices Act by failing to pass title for her new vehicle. Thereafter, Defendant asked the trial court to enforce the arbitration agreement between the parties. The trial court overruled the motion to compel arbitration on the ground that the contract between the parties was void under Mo. Rev. Stat. 301.210. The Supreme Court vacated the judgment of the trial court, holding that even though the sale between Plaintiff and Defendant may be void under section 301.210, that question is for the arbitrator to determine, not the trial court. Remanded with instructions for the trial court to grant Defendant’s motion and compel arbitration. View "Ellis v. JF Enters., LLC" on Justia Law