Articles Posted in Missouri Supreme Court

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Borrower brought suit against a payday loan company (Company), arguing that its arbitration agreement containing a class waiver was unenforceable. The trial court found that Company's arbitration agreement was unconscionable and unenforceable because its class waiver deprived borrowers of a meaningful remedy. The Supreme Court reversed in light of AT&T Mobility LLC v. Concepcion, holding that that the trial court erred in finding that Company's arbitration agreement was unconscionable based on its class waiver and should have instead adjudicated whether the arbitration agreement was enforceable in light of Borrower's evidence relevant to her claims regarding ordinary state-law principles that govern contracts but that do no single out or disfavor arbitration. Remanded. View "Robinson v. Title Lenders, Inc." on Justia Law

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Missouri Title Loans appealed from a judgment finding that a class arbitration waiver contained in its loan agreement, promissory note, and security agreement (agreement) was unenforceable. The Supreme Court affirmed the judgment insofar as it held that the arbitration waiver was unconscionable and reversed that part of the judgment ordering that the claim be submitted to an arbitrator to determine suitability for class arbitration, holding that the appropriate remedy was to strike the entire arbitration agreement. The U.S. Supreme Court vacated the Court's judgment and remanded for further consideration in light of AT&T Mobility, LLC. v. Concepcion. Applying Concepcion, the Supreme Court affirmed in part and reversed in part, holding (1) the presence and enforcement of the class arbitration waiver did not make the arbitration clause unconscionable; (2) the formation of the agreement was unconscionable; and (3) therefore, the appropriate remedy was revocation of the arbitration clause contained within the agreement. Remanded. View "Brewer v. Mo. Title Loans, Inc." on Justia Law

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Robert and Janet McKeage (Relators) sued Bass Pro Outdoor World in a five-count petition for charging a document preparation fee for purchasing a boat. Relators subsequently sought class certification of both in-state and out-of-state customers based upon the purchase agreement's choice of law provision, which required the application of Missouri law to all transactions. The circuit court certified a class that was limited to contracts entered into within the state. Relators sought relief by way of a writ of prohibition. The Supreme Court granted the writ, holding that the circuit court abused its discretion by limiting the putative class members to only those whose transactions occurred in Missouri where the class of plaintiffs that Relators sought to certify was limited to those who were charged a document preparation fee and whose contracts contained the Missouri choice of law provision. View "State ex rel. McKeage v. Circuit Court (Cordonnier)" on Justia Law

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The city of Winchester and its collector (Winchester) filed a class action lawsuit against Charter Communications on behalf of itself and other similarly situated Missouri municipal corporations and political subdivisions, seeking a declaratory judgment requiring Charter and other telephone service providers to comply with ordinances requiring them to pay a license tax on gross receipts derived from fees and services connected to their operations and an order requiring Charter to pay all license taxes owed to the class. The circuit court struck Winchester's claims on the basis of Mo. Rev. Stat. 71.675, which bars cities and towns from serving as class representatives in suits to enforce or collect business license taxes imposed on telecommunications companies. The Supreme Court quashed the court's preliminary writ of prohibition and granted Winchester's request for a permanent writ of mandamus directing the trial court to vacate its order, holding that the court exceeded its authority in striking Winchester's class action allegations pursuant to section 71.675, as the statute violated Mo. Const. art. V, 5 because it amended a procedural rule of the Court. View "State ex rel. Collector of Winchester v. Circuit Court (Jamison)" on Justia Law