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533 S.W.3d 223
Mo.
2017
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Background

  • 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)
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Case Details

Case Name: State ex rel. Regional Convention v. Burton
Court Name: Supreme Court of Missouri
Date Published: Nov 21, 2017
Citations: 533 S.W.3d 223; No. SC 96225
Docket Number: No. SC 96225
Court Abbreviation: Mo.
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    State ex rel. Regional Convention v. Burton, 533 S.W.3d 223