Section 26 Narrow or Broad Arbitration Provisions

• Library: Arbitration and Mediation 2011

Some fairly recent cases address whether a particular dispute is covered by the arbitration provision in question. In deciding the answer to this question, “the circuit court first must decide whether the arbitration clause is narrow or broad. A broad arbitration clause covers all disputes arising out of the arbitration agreement. A narrow clause limits arbitration to specific types of disputes.” Kansas City Urology, P.A. v. United Healthcare Servs., 261 S.W.3d 7, 11 (Mo. App. W.D. 2008) (citation omitted) (citing Estate of Athon v. Conseco Fin. Servicing Corp., 88 S.W.3d 26, 30 (Mo. App. W.D. 2002)).

Typically, broadly worded arbitration provisions cover all, or nearly all, anticipated disputes at ^the time of contract inception. Courts enforce these provisions. An example is a clause that applies to “[a]ll disputes, controversies or differences arising out of or in connection with this Agreement or the making thereof.” MedCam, Inc. v. MCNC, 414 F.3d 972, 975 (8^th Cir. 2005). Another broadly worded provision is one calling for arbitration of all disputes “arising hereunder.” CD Partners, LLC v. Grizzle, 424 F.3d 795, 801–02 (8^th Cir. 2005). When dealing with broadly worded arbitration provisions, the court analyzes whether the dispute relates to the subject matter of the agreement. If so, the court will send the dispute to arbitration. United Steelworkers of Am. AFL‑CIO‑CLC v. Duluth Clinic, Ltd., 413 F.3d 786 (8^th Cir. 2005); see also Int’l Union, United Auto., Aerospace & Agric. Implement Workers of Am. v. Rousselot, Inc., 334 Fed. Appx. 793 (8^th Cir. 2009)...