Enforceability Status
Class action waivers in Missouri new construction contracts are likely enforceable when paired with arbitration agreements. The FAA preempts state-law challenges under AT&T Mobility LLC v. Concepcion (2011). Missouri courts have generally upheld arbitration provisions in consumer contracts, and the state's Merchandising Practices Act provides individual remedies.
Legal Analysis
The Federal Arbitration Act (9 U.S.C. §§ 1-16) establishes a strong federal policy favoring arbitration agreements, including class action waivers. Under AT&T Mobility LLC v. Concepcion, 563 U.S. 333 (2011), the FAA preempts state rules conditioning arbitration on the availability of class-wide procedures. Missouri courts follow this federal precedent.
Missouri's Uniform Arbitration Act (Mo. Rev. Stat. §§ 435.350-435.470) provides a statutory framework for enforcing arbitration agreements. Missouri courts have upheld arbitration provisions in consumer contracts and have generally followed the national trend of enforcing class action waivers post-Concepcion.
Missouri applies unconscionability analysis under both common law and statutory provisions. Both procedural and substantive unconscionability must be demonstrated. Missouri courts have not developed a specific exception for class action waivers in builder contracts.
Missouri's Merchandising Practices Act (Mo. Rev. Stat. § 407.010 et seq.) provides individual remedies for unfair or deceptive trade practices, including the potential for punitive damages. These individual remedies remain available to buyers regardless of any class action waiver.
Relevant Missouri Law
Establishes a strong federal policy favoring arbitration agreements and preempts state laws that single out arbitration provisions for disfavored treatment.
Governs arbitration agreements in Missouri and provides for the enforcement of written arbitration agreements.
Prohibits unfair or deceptive trade practices and provides individual remedies including the potential for punitive damages.
Builders in Missouri Using This Clause
What Missouri Buyers Should Know
- Individual remedies under the Merchandising Practices Act Missouri's Merchandising Practices Act provides individual remedies for deceptive practices, including potential punitive damages, that are available regardless of any class action waiver.
- Review the full arbitration provision Understand the entire arbitration clause, including cost allocation and arbitration provider, in addition to the class action waiver.
- Document all construction defects Maintain detailed records of defects, warranty requests, and builder communications to support any individual claim.
- Consult a Missouri real estate attorney An attorney can evaluate the specific class action waiver language and advise on enforceability and your individual rights.