Can I require customers to sign contracts with binding arbitration clauses in Missouri? What are the requirements?

Yes, you can require customers to sign contracts with binding arbitration clauses in Missouri, subject to certain requirements.

Requirements for binding arbitration clauses in Missouri

According to MORS 435.460, each contract subject to the provisions of sections 435.350 to 435.470 shall include adjacent to, or above, the space provided for signatures a statement, in ten point capital letters, which read substantially as follows: “THIS CONTRACT CONTAINS A BINDING ARBITRATION PROVISION WHICH MAY BE ENFORCED BY THE PARTIES.”

Validity of arbitration agreement in Missouri

MORS 435.350 states that a written agreement to submit any existing controversy to arbitration or a provision in a written contract, except contracts of insurance and contracts of adhesion, to submit to arbitration any controversy thereafter arising between the parties is valid, enforceable and irrevocable, save upon such grounds as exist at law or in equity for the revocation of any contract.

Exceptions to binding arbitration in Missouri

MORS 435.415 provides that any arbitration award for personal injury, bodily injury, or death or any judgment or decree entered on an arbitration award for personal injury, bodily injury, or death shall not be binding on any insurer, shall not be admissible in evidence in any lawsuit against any insurer for any party to an arbitration award, and shall not provide the basis for any judgment or decree, including any garnishment, against any insurer, unless the insurer has agreed in writing to the arbitration proceeding.

Procedure for arbitration in Missouri

MORS 435.355 outlines the procedure for proceedings to compel or stay arbitration. On application of a party showing an agreement described in section 435.350, and the opposing party’s refusal to arbitrate, the court shall order the parties to proceed with arbitration.

Venue for arbitration in Missouri

MORS 435.435 provides that an initial application shall be made to the circuit court of the county in which the agreement provides the arbitration hearing shall be held or, if the hearing has been held, in the county in which it was held. Otherwise the application shall be made in the county where the adverse party resides or has a place of business or, if he has no residence or place of business in this state, to the circuit court of Cole County.

Appointment of arbitrators in Missouri

MORS 435.360 provides that if the arbitration agreement provides a method of appointment of arbitrators, this method shall be followed. In the absence thereof, or if the agreed method fails or for any reason cannot be followed, or when an arbitrator appointed fails or is unable to act and his successor has not been duly appointed, the court on application of a party shall appoint one or more arbitrators.

External arbitration in Missouri

MOCS 20 CSR 400-14.100 outlines the procedures by which the department will ensure access to binding arbitration when there is a dispute related to a claim for unanticipated out-of-network care and outlines the criteria for approved arbitrators.

Conclusion

In conclusion, you can require customers to sign contracts with binding arbitration clauses in Missouri, subject to certain requirements. The contract must include a statement about the binding arbitration provision, and the arbitration agreement must be valid and enforceable. There are exceptions to binding arbitration for personal injury, bodily injury, or death, and there are procedures for arbitration, venue, and appointment of arbitrators.

Jurisdiction

Missouri

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