Car Credit, Inc. v. Cathy L. Pitts, SC99335

Cathy Pitts bought a vehicle from Car Credit in 2011 and signed a Retail Installment Contract containing an arbitration agreement that named the National Arbitration Forum (NAF) as the default forum if no other organization was specified; the line to name an arbitration organization was left blank.
NAF had ceased handling consumer claims nationwide before this agreement was signed.
Car Credit repossessed the vehicle, sued for a deficiency, and Pitts filed a consumer class-action counterclaim. Litigation and motions to compel arbitration followed.
The Arbitration Agreement contained a delegation clause expressly delegating threshold arbitrability questions (including whether a matter is subject to arbitration) to the arbitrator, while excluding class claims and small claims under $2,500.
The trial court enforced the delegation clause, appointed the AAA as a substitute arbitrator under FAA §5, and stayed/compelled individual arbitration; the AAA arbitrator ruled he had jurisdiction and later awarded judgment to Car Credit.
Pitts challenged confirmation of the award on the ground that the NAF was the exclusive forum and unavailable; the Missouri Supreme Court (en banc) affirmed confirmation, holding the delegation clause valid and that substitution under §5 was appropriate.

Issue	Plaintiff's Argument	Defendant's Argument	Held
Whether the arbitration agreement is invalid because NAF (the named forum) was unavailable	Pitts: The parties agreed to arbitrate only before NAF; NAF's unavailability voids the agreement	Car Credit: The agreement defaults to NAF but contemplates other forums and contains a delegation clause; FAA §5 permits a court to appoint a substitute arbitrator	Court: Delegation clause valid; agreement not limited to NAF; §5 authorized substitution (AAA) and arbitration was compelled
Whether threshold arbitrability (including NAF unavailability) had to be decided by the court or arbitrator	Pitts: Arbitrability (including forum availability) should be decided by the court because NAF was essential	Car Credit: Delegation clause clearly and unmistakably delegates gateway arbitrability issues to the arbitrator	Court: Pitts never specifically challenged the delegation clause; therefore arbitrator decides gateway issues and the clause is enforced
Whether the arbitration award should be vacated because arbitrator exceeded authority or manifestly disregarded law	Pitts: Arbitrator exceeded authority by substituting AAA and misapplied the agreement	Car Credit: Arbitrator acted within contractually delegated authority; review is highly deferential	Court: Arbitrator’s decision drew its essence from the contract; no basis to vacate under §10; award confirmed

AT&T Mobility, LLC v. Concepcion, 563 U.S. 333 (general principle that arbitration is a matter of contract under the FAA)
Rent-A-Center, W., Inc. v. Jackson, 561 U.S. 63 (delegation clauses can validly assign arbitrability questions to arbitrators)
Oxford Health Plans LLC v. Sutter, 569 U.S. 564 (very limited judicial review of arbitrators' decisions; vacatur only when award fails to draw its essence from the contract)
State ex rel. Pinkerton v. Fahnestock, 531 S.W.3d 36 (Mo. banc 2017) (treating delegation provisions as separable and addressing who decides arbitrability)
Soars v. Easter Seals Midwest, 563 S.W.3d 111 (Mo. banc 2018) (requirement to specifically challenge a delegation clause to avoid its application)
A-1 Premium Acceptance, Inc. v. Hunter, 557 S.W.3d 923 (Mo. banc 2018) (distinguishing agreements limited to NAF from those that are not; §5 substitution analysis)
Ellis v. JF Enters., LLC, 482 S.W.3d 417 (Mo. banc 2016) (motion to compel arbitration is reviewed de novo)