Section 57 Appeal of Trial Court Rulings Regarding Motions to Compel Arbitration

• Library: Consumer Law and Practice 2010

When an arbitration agreement exists, and when either of the parties seeks arbitration, it is likely that there will be an arbitration, given the tendency of Missouri courts to construe arbitration provisions broadly in favor of finding a duty to arbitrate.

When the trial court denies a motion to compel arbitration or refuses to stay a court action pending arbitration, however, both the FAA (Federal Arbitration Act), 9 U.S.C. § 1 et seq., and the MUAA (Missouri Uniform Arbitration Act), § 435.350 et seq., RSMo 2000, provide a specific right for an immediate interlocutory appeal. See 9 U.S.C. § 16; § 435.440.1, RSMo 2000; Hooper v. Advance Am., Cash Advance Ctrs. of Mo., Inc., 589 F.3d 917, 920 (8^th Cir. 2009). Further, in Jackson County v. McClain Enterprises, Inc., 190 S.W.3d 633, 639 (Mo. App. W.D. 2006), the appeal of a ruling denying arbitration was heard even when the trial court ruling had been denominated an "order." The court will find the right to appeal a trial court's order denying a motion to compel arbitration if either the FAA or the MUAA grants such a right in the case. Duggan v. Zip Mail Servs., Inc., 920 S.W.2d 200, 202 (Mo. App. E.D. 1996).

A cautionary note regarding the timing of the filing of the notice of appeal is required. In Hershewe v. Alexander, 264 S.W.3d 717, 718 (Mo. App. S.D. 2008), the court held that § 435.440 provides that orders denying motions to compel arbitration are final and appealable immediately after the order has been issued (not 30 days after the entry of that order) and that the notice of appeal should have been filed within 10 days of the entry of that final order denying an application to compel arbitration.

In many consumer cases, the court compels arbitration, but the consumer nonetheless believes he or she is entitled to remain in court (e.g., because of lower forum expenses). Neither Missouri law nor federal law provides for an immediate appeal in this situation. The MUAA "does not allow an appeal from...