Justia Commercial Law Opinion Summaries

The Supreme Court reversed the rulings of the circuit court denying Bridgecrest Acceptance Corporation's motions to dismiss or stay the counterclaims against it and to compel the matters to arbitration pursuant to an arbitration agreement, holding that the arbitration agreement was legally valid, conscionable, and not precluded by collateral estoppel.In two separate cases, Bridgecrest sought a deficiency judgment against consumers who had defaulted on car payments. The consumers brought counterclaims, raising putative class claims for unlawful and deceptive business practices. Bridgecrest moved to stay or dismiss the consumers' counterclaims and compel arbitration pursuant to the arbitration agreements signed by the consumers when buying their vehicles. The circuit court overruled the motions in both cases. The Supreme Court reversed, holding that the circuit court erred in refusing to compel arbitration. View "Bridgecrest Acceptance Corp. v. Donaldson" on Justia Law

The Supreme Court reversed in part the circuit court’s judgment in favor of Sun Aviation, Inc. on the complaint filed by L-3 Communications Avionics Systems, Inc. for violations of various provisions of the Merchandising Practices Act, Mo. Rev. Stat. 407.010 et seq. When L-3’s parent company underwent a consolidation process, the parent decided to terminate L-3’s distributorship with Sun, and directed L-3 to do so. Sun then filed an action against L-3. The court held (1) L-3’s gyros and power supplies did not fit the definition of “industrial, maintenance and construction power equipment” as applicable in the Industrial Maintenance and Construction Power Equipment Act and the Inventory Repurchase Act; (2) the circuit court erred in entering judgment in favor of Sun on L-3’s fraudulent concealment claim because the circuit court erred in determining that L-3 had a duty to disclose its parent company’s consolidation plans; and (3) the circuit court erred in awarding eighteen years of lost profits as damages on the count alleging violations of the Franchise Act. The court remanded the case for a new trial on damages and affirmed the judgment in all other respects. View "Sun Aviation, Inc. v. L-3 Communications Avionics Systems, Inc." on Justia Law