Arbitration agreements binding in Missouri

With increasing frequency, disputes are being resolved through arbitration or mediation rather than litigation. Many contracts contain arbitration provisions. Missouri has adopted the Uniform Arbitration Act (Chapter 435 RSMo.), which provides that the parties to a contract may agree to submit to arbitration any controversies which may arise between them.

If certain requirements are met, the arbitration agreement is valid and enforceable. Courts have held that an arbitration clause is to be construed so as to favor arbitratability, and arbitration should not be denied unless it may be said with positive assurance that the arbitration clause does not cover the asserted dispute.

For the arbitration provisions to be enforceable in Missouri, the contract should include, either adjacent to or above the space provided for the signatures, a statement in 10-point capital letters, which reads substantially as follows: "This contract contains a binding arbitration provision which may be enforced by the parties." This notice is not required under the federal arbitration statute, which applies to transactions involving interstate commerce.

Missouri courts have also held, under some circumstances, that where the parties to the contract had actual notice of the arbitration clause in the contract, the purpose of the statute was fulfilled and compliance with the 10 point type requirement was irrelevant. If the requirements...