533 S.W.3d 223
Mo.2017Background
- The Regional Convention and Sports Complex Authority (Authority) leased a training facility to the St. Louis Rams, LLC (Rams) and later sued to void lease provisions giving the Rams a $1 purchase option.
- The Authority filed a three-count declaratory-judgment petition seeking relief under the lease.
- The Rams moved to compel arbitration under a broad arbitration clause in paragraph 45 of Schedule I of the lease (covering “all disputes between the Parties hereto arising out of this Lease”).
- The Authority sought a stay of arbitration, arguing the lease’s attorney-fee, litigation-location, and “judgment” language show the parties intended declaratory-judgment claims to be decided in court.
- The circuit court compelled arbitration and dismissed the suit; the court of appeals issued a preliminary writ of mandamus to stay arbitration and later made it permanent; the Missouri Supreme Court granted transfer and quashed the preliminary writ.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the declaratory-judgment action is subject to the lease’s arbitration clause | Authority: other lease provisions (attorney-fee "judgment" language, rights to "institute suit," forum-selection/litigation clauses) show intent to exclude declaratory relief from arbitration | Rams: arbitration clause is broad and covers any dispute arising out of the lease, including declaratory claims | The arbitration clause is broad; the other provisions do not unambiguously exclude declaratory actions, so arbitration applies |
| Whether the arbitration agreement lacks consideration and is unenforceable | Authority: arbitration clause unsupported by consideration | Rams: the contract as a whole supplies consideration, so no separate consideration for arbitration is needed | Consideration argument rejected; arbitration clause enforceable as part of the contract as a whole |
Key Cases Cited
- State ex rel. Hewitt v. Kerr, 461 S.W.3d 798 (Mo. banc 2015) (mandamus appropriate to review erroneously granted motion to compel arbitration)
- Eaton v. CMH Homes, 461 S.W.3d 426 (Mo. banc 2015) (de novo review of whether court should have compelled arbitration; arbitration-clause consideration principles)
- Dunn Indus. Grp., Inc. v. City of Sugar Creek, 112 S.W.3d 421 (Mo. banc 2003) (liberal federal policy favoring arbitration; ambiguous questions resolved for arbitration; language excluding claims must be unmistakably clear)
- United Steelworkers of Am. v. Warrior & Gulf Navigation Co., 363 U.S. 574 (U.S. 1960) (broad arbitration clauses cover disputes absent clear exclusion)
- Baker v. Bristol Care, Inc., 450 S.W.3d 770 (Mo. banc 2014) (definition of consideration for contract enforcement)
