{"id":168098,"date":"2025-04-02T11:14:18","date_gmt":"2025-04-02T11:14:18","guid":{"rendered":"https:\/\/peraltafinancing.com\/business\/legal\/filing-a-motion-to-dismiss-does-not-necessarily-waive-arbitration\/"},"modified":"2025-04-02T11:14:18","modified_gmt":"2025-04-02T11:14:18","slug":"filing-a-motion-to-dismiss-does-not-necessarily-waive-arbitration","status":"publish","type":"post","link":"https:\/\/fivemor.com\/?p=168098","title":{"rendered":"Filing a Motion to Dismiss Does Not Necessarily Waive Arbitration"},"content":{"rendered":"


\n<\/p>\n

\n

In a recent decision with practical implications for litigators and transactional counsel alike, the Supreme Court of Missouri<\/a> held that filing a motion to dismiss for failure to state a claim did\u00a0not<\/strong>\u00a0constitute a waiver of the right to compel arbitration\u2014provided that right is timely asserted thereafter.<\/p>\n

The case,\u00a0Lange v. GMT Auto Sales, Inc.<\/em>\u00a0(No. SC100608), arose from a putative class action brought by a consumer alleging violations of the Missouri Merchandising Practices Act related to administrative fees charged in connection with camper sales. GMT initially responded to the petition with a motion to dismiss under Rule 55.27(a)(6), arguing the Lange\u2019s claims were legally insufficient as pleaded. After the circuit court denied motion, GMT moved to compel arbitration, citing an arbitration clause in a retail installment contract signed at the time of sale.\u00a0 Shortly thereafter, GMT timely filed its answer to the petition and raised the arbitration provision as an affirmative defense,<\/p>\n

The Supreme Court reversed the Eastern District Court of Appeals<\/a>, which had found that GMT\u2019s filing of the initial motion amounted to a waiver of arbitration. Emphasizing longstanding Missouri precedent, the Court explained that waiver of a contractual right\u2014including the right of arbitration\u2014requires a finding of conduct that \u201cclearly and unequivocally\u201d demonstrates an intent by the party to relinquish that right. Filing a motion to dismiss for failure to state a claim, the Court reasoned, does not ask a court to decide the merits of the plaintiff\u2019s claim and thus is not inherently inconsistent with a later demand for arbitration.<\/p>\n

Importantly, the Court distinguished a motion to dismiss from a motion for judgment on the pleadings, the latter of which\u00a0does\u00a0seek resolution on the merits and may more readily support the finding of waiver.<\/p>\n

The majority opinion also reaffirmed that arbitration is an affirmative defense that should be raised in a timely responsive pleading. \u00a0Again, GMT did so in its answer, filed within days after filing its motion to compel arbitration.<\/p>\n

In dissent, Judge Robin Ransom\u2014joined by Judges Powell and Wilson\u2014contended that GMT\u2019s motion to dismiss was not limited to procedural or jurisdictional grounds but instead sought a substantive ruling in its favor, citing statutory authority and challenging the legal sufficiency of the consumer\u2019s MMPA claims. The dissent viewed GMT\u2019s arguments as a strategic choice in which GMT asked the circuit court to substantively rule in its favor on the merits and dismiss plaintiff\u2019s claims with prejudice.\u00a0The dissent reasoned GMT\u2019s actions demonstrated a clear intent to litigate rather than arbitrate, sufficient to establish waiver.<\/p>\n

The decision offers clear guidance for litigators navigating the interplay between initial motion practice and enforcement of arbitration clauses. A motion to dismiss may not by itself waive the right to arbitrate\u2014but as the Court\u2019s opinion and dissent make clear,\u00a0how<\/strong>\u00a0and\u00a0when<\/strong>\u00a0a party acts can carry significant consequences.<\/p>\n

Stay tuned for future insights on emerging developments in Missouri appellate law<\/a>.<\/p>\n<\/p><\/div>\n\n","protected":false},"excerpt":{"rendered":"

In a recent decision with practical implications for litigators and transactional counsel alike, the Supreme Court of Missouri held that filing a motion to dismiss for failure to state a claim did\u00a0not\u00a0constitute a waiver of the right to compel arbitration\u2014provided that right is timely asserted thereafter. The case,\u00a0Lange v. GMT Auto Sales, Inc.\u00a0(No. SC100608), arose […]<\/p>\n","protected":false},"author":1,"featured_media":168099,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[97],"tags":[27371,21902,13722,16623,19372,67578],"dealstore":[],"offerexpiration":[],"class_list":["post-168098","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-legal","tag-arbitration","tag-dismiss","tag-filing","tag-motion","tag-necessarily","tag-waive"],"yoast_head":"\nFiling a Motion to Dismiss Does Not Necessarily Waive Arbitration - Som2ny Network<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/fivemor.com\/?p=168098\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Filing a Motion to Dismiss Does Not Necessarily Waive Arbitration - Som2ny Network\" \/>\n<meta property=\"og:description\" content=\"In a recent decision with practical implications for litigators and transactional counsel alike, the Supreme Court of Missouri held that filing a motion to dismiss for failure to state a claim did\u00a0not\u00a0constitute a waiver of the right to compel arbitration\u2014provided that right is timely asserted thereafter. 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