Opinion handed down May 26, 2015
In Eaton v. CMH Homes, Inc. (“CMH”), Mr. Eaton contracted with CMH to purchase a manufactured home. On or around September 27, 2012, Mr. Eaton sued CMH for alleged defects in the home. Mr. Eaton’s complaint alleged fraud, negligence, breach of contract, and negligent misrepresentation.
CMH denied the allegations and moved to dismiss or stay the court action. Further, CMH moved to enforce the arbitration agreement section of the contract by compelling arbitration between the parties. Mr. Eaton replied, arguing the arbitration agreement was unconscionable.
The trial court overruled CMH’s motion to dismiss or stay the court action and compel arbitration. On appeal, the Missouri Court of Appeals for the Eastern District affirmed the trial court’s holding. Upon transfer, the Supreme Court of Missouri held that the trial court erred in refusing to compel arbitration. The court noted that the anti-waiver clause of the arbitration agreement was unconscionable, but the clause did not render the entire agreement unenforceable.