Missouri Supreme Court to consider consumer loan arbitration case.

December 20, 2017

On December 19, 2017, the Missouri Supreme Court granted transfer in A-1 Premium Acceptance, Inc. v. Hunter.

The case involves an arbitration clause in a consumer loan agreement which provides for a specific arbitrator who is no longer able to serve.  The trial court had found that this was an integral term of the contract and that therefore the arbitration agreement was not effective.  The Western District Court of Appeals held, in a 2-1 opinion, that this was not an integral term and that the Federal Arbitration Act’s rules for substituting an arbitrator should apply.

The consumer sought transfer on the basis of general interest and importance, based on the frequent use of arbitration agreements in consumer contracts.