Justia Missouri Supreme Court Opinion Summaries

Missouri Title Loans appealed from a judgment finding that a class arbitration waiver contained in its loan agreement, promissory note, and security agreement (agreement) was unenforceable. The Supreme Court affirmed the judgment insofar as it held that the arbitration waiver was unconscionable and reversed that part of the judgment ordering that the claim be submitted to an arbitrator to determine suitability for class arbitration, holding that the appropriate remedy was to strike the entire arbitration agreement. The U.S. Supreme Court vacated the Court's judgment and remanded for further consideration in light of AT&T Mobility, LLC. v. Concepcion. Applying Concepcion, the Supreme Court affirmed in part and reversed in part, holding (1) the presence and enforcement of the class arbitration waiver did not make the arbitration clause unconscionable; (2) the formation of the agreement was unconscionable; and (3) therefore, the appropriate remedy was revocation of the arbitration clause contained within the agreement. Remanded. View "Brewer v. Mo. Title Loans, Inc." on Justia Law

Casey's Marketing Company was a convenience store engaged in the retail sale of gas, grocery items, nonfood items, and prepared foods. Aquila Foreign Qualifications Corporation was a utility that sold electricity to Casey's. Casey's filed a refund claim with the director of revenue for one month's tax paid for a portion of electricity Aquila sold to two Casey's locations. The director denied the claim. At Casey's request, Aquila challenged the director's final decision. The administrative hearing commission reversed, holding that Mo. Rev. Stat. 144.054.2, which provides a tax exemption for the "processing" of products," exempted Casey's food preparation operations. The Supreme Court reversed the commission, holding (1) the preparation of food for retail consumption is not "processing" within the meaning of section 144.054.2; and (2) therefore, Casey was not entitled to a sales and use tax exemption on electricity it purchased to power its food preparation operations. View "Aquila Foreign Qualifications Corp. v. Dir. of Revenue" on Justia Law

Respondents, Legends Bank and John Klebba, filed a declaratory judgment action asserting that S.B. 844 (the Bill), which the Legislature passed in 2010, (1) violated the single subject requirement and original purpose requirement of the Missouri Constitution, and (2) violated the First Amendment insofar as it barred political action committees from receiving money from state chartered banks but allowed political action committees to receive money from other entities and individuals. The trial court sustained Respondents' motion for judgment on the pleadings, finding (1) procurement was the original controlling purpose of the Bill, (2) the Bill was enacted in violation of the single subject requirement of the state Constitution, and (3) the Bill violated the First Amendment. The court then voided S.B. 844 except for the procurement provisions. The Supreme Court affirmed, holding that the Bill violated Mo. Const. art III, 21, which prohibits changes in the original purpose of a bill, as (1) the original purpose of the Bill related to procurement, and (2) the vast majority of the provisions in the final version related to ethics and campaign finance, which were not germane to the original purpose of the Bill. View "Legends Bank v. State" on Justia Law

Kevin Bromwell and several other inmates (Appellants) of the Jefferson County Correctional Center filed a petition for declaratory judgment and injunctive relief, alleging that the circuit court's application of the Missouri Prisoner Litigation Reform Act to petitions for writs of habeas corpus violated the state and federal Constitutions. Appellants then filed a consolidated petition for writs of habeas corpus. The circuit court quashed service of process, dismissed the counts alleged in the consolidated petition for declaratory judgment for failure to state a claim upon which relief may be granted, and dismissed the petition for writs of habeas corpus without prejudice. The Supreme Court affirmed the circuit court's judgment, holding (1) the consolidated petitions for writs of habeas corpus claims were properly dismissed and there was no right to appeal; and (2) the circuit court properly dismissed Appellant's declaratory judgment petition, as Appellants failed to state claims upon which relief could be granted. View "Bromwell v. Nixon" on Justia Law

Craig Street requested a refund of the local sales taxes the Missouri Director of Revenue required him to pay to license the boat, outboard motor, and trailer he purchased from a dealer in Maryland. The Administrative Hearing Commission (AHC) denied Street's request. Street appealed, claiming that the AHC erred because its interpretation of Mo. Rev. Stat. 144.069 and 32.087.12(2) to permit the County's assessment and collection of local sales tax on his out-of-state purchase was clearly contrary to the reasonable expectations of the General Assembly in enacting the local sales tax statutes. The Supreme Court reversed, holding that because the plain and ordinary meaning of the Sales Tax Law, Mo. Rev. Stat. 144.010 to 144.525, authorizes a county to impose sales taxes only on sales occurring within Missouri, the decision of the AHC upholding the Director's collection of a local sales tax on Street's out-of-state purchases was unauthorized by law. Remanded. View "Street v. Dir. of Revenue" on Justia Law

Max and Glenna Overbey recovered judgments against Chad Franklin National Auto Sales North, LLC (National) and Chad Franklin (Franklin) for fraudulent representations in violation of the Missouri Merchandising Practices Act made in connection with National's sale of a vehicle to the Overbeys. Franklin appealed, and the Overbeys appealed the trial court's reduction of the punitive damage verdict as required by statute. The Supreme Court affirmed, holding (1) the award against Franklin was fully supported by the evidence; and (2) the limit of punitive damages did not violate the Overbeys' constitutional rights or the separation of powers doctrine. View "Estate of Overbey v. Chad Franklin Nat'l Auto Sales N., LLC" on Justia Law

Defendant Tyler McNeely refused to consent to an alcohol breath test or a blood test after he was arrested for driving while intoxicated. The arresting patrolman, without seeking a warrant from a judge, ordered a medical professional to draw Defendant's blood. The trial court sustained Defendant's motion to suppress the results of the blood test, concluding that the nonconsensual and warrantless blood draw was a violation of Defendant's Fourth Amendment rights. The Supreme Court affirmed, holding (1) the fact that blood-alcohol levels dissipate after drinking ceases is not a per se exigency pursuant to Schmerber v. California justifying an officer to order a blood test without obtaining a warrant from a neutral judge; and (2) the arresting patrolman, therefore, was not justified in failing to seek a warrant before drawing Defendant's blood over his refusal to consent. View "State v. McNeely" on Justia Law

Molly Teichman, as a citizen and qualified voter, filed a petition for permanent writs of prohibition and mandamus to prevent the secretary of state from holding an election based on either the original or revised Senate plan and map submitted by the nonpartisan senate reapportionment commission. The Supreme Court sustained the petition and directed that a writ of prohibition issue to the secretary of state, holding (1) the commission had no authority to revise the reapportionment process on its own volition even if a majority of the members of the commission recognized a constitutional infirmity in the plan and map that had been unanimously signed and filed; (2) the original plan and map violated a clear and express constitutional limitation regarding the splitting of counties and was, therefore, invalid; and (3) Mo. Const. art. III, 7 compelled the legislative process to be redone in accordance with its terms. Remanded. View "State ex rel. Teichman v. Carnahan" on Justia Law

Robert and Janet McKeage (Relators) sued Bass Pro Outdoor World in a five-count petition for charging a document preparation fee for purchasing a boat. Relators subsequently sought class certification of both in-state and out-of-state customers based upon the purchase agreement's choice of law provision, which required the application of Missouri law to all transactions. The circuit court certified a class that was limited to contracts entered into within the state. Relators sought relief by way of a writ of prohibition. The Supreme Court granted the writ, holding that the circuit court abused its discretion by limiting the putative class members to only those whose transactions occurred in Missouri where the class of plaintiffs that Relators sought to certify was limited to those who were charged a document preparation fee and whose contracts contained the Missouri choice of law provision. View "State ex rel. McKeage v. Circuit Court (Cordonnier)" on Justia Law

The city of Winchester and its collector (Winchester) filed a class action lawsuit against Charter Communications on behalf of itself and other similarly situated Missouri municipal corporations and political subdivisions, seeking a declaratory judgment requiring Charter and other telephone service providers to comply with ordinances requiring them to pay a license tax on gross receipts derived from fees and services connected to their operations and an order requiring Charter to pay all license taxes owed to the class. The circuit court struck Winchester's claims on the basis of Mo. Rev. Stat. 71.675, which bars cities and towns from serving as class representatives in suits to enforce or collect business license taxes imposed on telecommunications companies. The Supreme Court quashed the court's preliminary writ of prohibition and granted Winchester's request for a permanent writ of mandamus directing the trial court to vacate its order, holding that the court exceeded its authority in striking Winchester's class action allegations pursuant to section 71.675, as the statute violated Mo. Const. art. V, 5 because it amended a procedural rule of the Court. View "State ex rel. Collector of Winchester v. Circuit Court (Jamison)" on Justia Law