Opinion ID: 2541602
Heading Depth: 1
Heading Rank: 6

Heading: Is Title Lenders' Arbitration Agreement Enforceable?

Text: The issue to be determined in this appeal is whether the trial court erred in finding that Title Lenders' arbitration agreement was unenforceable. In this case, Borrower raised multiple arguments challenging the enforceability of Title Lenders' arbitration agreement based on Missouri's contract law prohibitions against unconscionable agreements. [13] The trial court's judgment, however, was based solely on its determination that the arbitration agreement was unconscionable because its terms were unduly harsh and not commercially reasonable in the prohibition of class actions and the ability to arbitrate as a class. The trial court refused to enforce Title Lenders' arbitration agreement on the basis that it contained class waiver provisions that the court determined would impermissibly deprive Borrower of a meaningful remedy. Pursuant to Concepcion, the trial court clearly erred in finding that Title Lenders' arbitration agreement was unenforceable based on its class waiver. Concepcion instructs that, instead of limiting its unconscionability considerations to the presence of the class waiver, the trial court should have assessed whether the arbitration agreement was enforceable in light of Borrower's additional arguments regarding ordinary state-law principles that govern contracts but that do not single out or disfavor arbitration. [14] Because the trial court's judgment adjudicated only Borrower's claim of unconscionability based on the class waiver, it did not adjudicate Borrower's other claims of unconscionability. As such, there remain factual issues relevant to determining whether Title Lenders' arbitration agreement was properly declared unenforceable based on Borrower's arguments alleging unconscionability that remain relevant post- Concepcion. As the fact-finder, the trial court should assess the evidence in this case and determine if the underlying arbitration agreement is enforceable in light of Concepcion 's instructions.