Missouri House Bill HB1533

Missouri 2022 Regular Session

• Introduced: 1/5/22
• Refer: 5/13/22

Caption

Establishes provisions regarding businesses failing to pay arbitration fees

Impact

The bill amends Chapter 435 of the Revised Statutes of Missouri by adding three new sections. It provides employees or consumers the option to either withdraw their claims and pursue them in court or to proceed with arbitration under the condition that the non-compliant drafting party bears the cost of related fees, including attorney's fees. Such provisions are intended to incentivize compliance among arbitration companies and promote fairness in the arbitration process, ensuring that parties who are entitled to relief are not obstructed due to non-payment of fees by the drafting party.

Summary

House Bill 1533 introduces new provisions regarding the consequences of failing to pay arbitration fees in employment and consumer-related arbitration cases. It specifically mandates that any drafting party involved in arbitration is required to remit certain fees and costs prior to the proceedings starting. If these fees are not paid within thirty days of their due date, the drafting party is considered in material breach of the arbitration agreement and forfeits their right to compel arbitration. This establishes a clearer framework aimed at protecting employees and consumers by allowing them to withdraw claims or compel arbitration under specific conditions if the drafting party defaults on fee payments.

Contention

Notable points of contention around HB 1533 revolve around the balance of power in arbitration agreements and the enforcement of contractual obligations. Supporters argue that this bill is crucial for consumer protection and supports equitable treatment in arbitration, ensuring that parties cannot evade accountability through non-payment of fees. Conversely, opponents may express concerns about how these provisions impact the use of arbitration more broadly, potentially complicating an already intricate process and raising issues about parties' ability to successfully navigate arbitration agreements without the threat of incurring default through bureaucratic obstacles.