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Missouri Senate Bill SB256

Missouri 2025 Regular Session

Missouri Senate Bill SB256 Compare Versions

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22 EXPLANATION-Matter enclosed in bold-faced brackets [thus] in this bill is not enacted
33 and is intended to be omitted in the law.
44 FIRST REGULAR SESSION
55 SENATE BILL NO. 256
66 103RD GENERAL ASSEMBLY
77 INTRODUCED BY SENATOR ROBERTS.
88 0576S.01I KRISTINA MARTIN, Secretary
99 AN ACT
1010 To repeal section 435.014, RSMo, and to enact in lieu thereof five new sections relating to
1111 alternative dispute resolution.
1212
1313 Be it enacted by the General Assembly of the State of Missouri, as follows:
1414 Section A. Section 435.014, RSMo, is repealed and five 1
1515 new sections enacted in lieu thereof, to be known as sections 2
1616 435.300, 435.303, 435.306, 435.309, and 435.312, to read as 3
1717 follows:4
1818 435.300. As used in sections 435.300 to 435.312, the 1
1919 following terms mean: 2
2020 (1) "Alternative dispute resolution communication", a 3
2121 statement, whether communicated orally, in writing, or by 4
2222 nonverbal conduct, that is eithe r: 5
2323 (a) Related to the subject matter of the dispute and 6
2424 made during an alternative dispute resolution process; or 7
2525 (b) Made as part of considering, conducting, 8
2626 participating in, initiating, continuing, or reconvening an 9
2727 alternative dispute re solution process. 10
2828 The term "alternative dispute resolution communication" 11
2929 shall not include the notifications or reports made pursuant 12
3030 to subsection 2 of section 435.303 or subsection 8 of 13
3131 section 435.306 or a written agreement as described in 14
3232 section 435.312; 15 SB 256 2
3333 (2) "Alternative dispute resolution process", 16
3434 mediation, arbitration, or early neutral evaluation used in 17
3535 conjunction with a pending civil action, and any other 18
3636 alternative to trial that has been included in a local court 19
3737 rule applicable to a civil dispute; 20
3838 (3) "Arbitration", a procedure in which a neutral or 21
3939 panel of neutrals hears and decides a dispute between two or 22
4040 more parties; 23
4141 (4) "Conflict of interest", any direct or indirect 24
4242 financial or personal interest in the out come of a dispute 25
4343 or any existing or prior financial, business, professional, 26
4444 familial, or social relationship with any participant in an 27
4545 alternative dispute resolution process that is likely to 28
4646 affect the impartiality of the neutral or that may 29
4747 reasonably create an appearance of partiality or bias; 30
4848 (5) "Early neutral evaluation", a process in which a 31
4949 neutral provides parties to a dispute with a nonbinding 32
5050 assessment of their dispute; 33
5151 (6) "In camera", a proceeding held in a judge's 34
5252 chambers or in a courtroom from which the public is excluded; 35
5353 (7) "Mandated reporter", an individual who is required 36
5454 to report abuse or neglect pursuant to the provisions of 37
5555 section 192.2405, 192.2475, 198.070, 208.912, 210.115, 38
5656 352.400, 630.162, or 63 0.165; 39
5757 (8) "Mediation", a process in which a neutral 40
5858 facilitates communications among the parties and assists the 41
5959 parties in their efforts to reach a voluntary agreement 42
6060 regarding the dispute; 43
6161 (9) "Mediator", a neutral who conducts mediation ; 44
6262 (10) "Neutral", an individual who, acting 45
6363 independently and not as a representative, agent, or 46
6464 advocate of any of the parties, assists the parties in their 47 SB 256 3
6565 efforts to reach a resolution of their dispute through an 48
6666 alternative dispute resolution process; 49
6767 (11) "Participant", any person or entity, including 50
6868 any neutral or party, who participates in an alternative 51
6969 dispute resolution process; 52
7070 (12) "Party", an individual or entity named as a party 53
7171 in a pending civil action, or in an agr eement to use an 54
7272 alternative dispute resolution process as described in 55
7373 sections 435.309 and 435.312; 56
7474 (13) "Person", an individual; a public or private 57
7575 corporation, business trust, estate, trust, partnership, 58
7676 limited liability company, or insuran ce company; an 59
7777 association; a joint venture; a governmental unit, 60
7878 subdivision, agency, or instrumentality of the state; or any 61
7979 other legal or commercial entity; 62
8080 (14) "Proceeding", a judicial, administrative, 63
8181 arbitral, or other adjudicative proces s, including related 64
8282 prehearing and posthearing motions, conferences, hearings, 65
8383 and discovery; 66
8484 (15) "Writing" or "written", a tangible or electronic 67
8585 record of a communication or representation, including 68
8686 handwriting, typewriting, printing, photos tating, 69
8787 photography, audio or video recording, and electronic 70
8888 communication; 71
8989 (16) "Written agreement", a writing that: 72
9090 (a) Contains the essential terms of an agreement; and 73
9191 (b) Is signed, executed, or adopted by the parties, by 74
9292 any process described in subdivision (15) of this section, 75
9393 including electronic signatures as permitted by section 76
9494 432.230, with the intent to sign and be bound by the 77
9595 writing, and attached to or logically associated with the 78
9696 writing. 79 SB 256 4
9797 435.303. 1. A court may refer any individual civil 1
9898 case or category of civil cases to mediation or any other 2
9999 nonbinding alternative dispute resolution process, either by 3
100100 rule or court order. 4
101101 2. Within thirty days of referral by a court to a 5
102102 nonbinding alternative dispute resolution process pursuant 6
103103 to subsection 1 of this section, or such longer time as may 7
104104 be set by the court, or with leave of the court, the parties 8
105105 may: 9
106106 (1) Notify the court that all of the parties have 10
107107 chosen to pursue an alternative dispute resolution process 11
108108 different from the nonbinding alternative dispute resolution 12
109109 process ordered by the court if such choice is evidenced in 13
110110 a written agreement between the parties; 14
111111 (2) Notify the court that all of the parties have 15
112112 agreed to delay such alternative dispute resolution process 16
113113 until a date certain, which date may be subsequently 17
114114 modified by the court, to allow for the exchange of 18
115115 specified information, the identification of representatives 19
116116 with authority, or a ny other identified action or event 20
117117 related to the ability of the parties to participate 21
118118 effectively in the alternative dispute resolution process; or 22
119119 (3) If any party, after conferring with all other 23
120120 parties, concludes that referral to a nonbindi ng alternative 24
121121 dispute resolution process has no reasonable chance of 25
122122 helping the parties to better understand or resolve one or 26
123123 more of the procedural or substantive issues in the matter 27
124124 or there is a compelling circumstance for not participating 28
125125 in the alternative dispute resolution process, the party may 29
126126 file a motion for relief from the referral, setting forth 30
127127 the reasons for not participating. Once a motion for relief 31
128128 has been filed, the alternative dispute resolution process 32 SB 256 5
129129 ordered by the court shall not occur until the court has 33
130130 ruled on the motion. If the court grants the motion, the 34
131131 matter shall not thereafter be referred by the court to an 35
132132 alternative dispute resolution process without compelling 36
133133 circumstances, which shall be set ou t by the court in any 37
134134 order referring the matter to an alternative dispute 38
135135 resolution process. 39
136136 3. In an action referred to an alternative dispute 40
137137 resolution process, discovery may proceed as in any other 41
138138 action before, during, and after the alter native dispute 42
139139 resolution process is held. The court may stay discovery in 43
140140 whole or in part during the pendency of an alternative 44
141141 dispute resolution process in order to promote savings in 45
142142 time and expense without sacrificing the quality of justice. 46
143143 4. A neutral who is appointed by the court or 47
144144 requested by the parties to serve in an alternative dispute 48
145145 resolution process pursuant to sections 435.300 to 435.312 49
146146 shall avoid any conflict of interest. Even if the neutral 50
147147 believes that no disqual ifying conflict exists, the neutral 51
148148 shall: 52
149149 (1) Make a reasonable inquiry to determine whether 53
150150 there are any facts that would cause a reasonable person to 54
151151 believe that the neutral has an actual or potential conflict 55
152152 of interest before agreeing to serve in a matter; 56
153153 (2) Disclose to the parties, as soon as practicable, 57
154154 facts and information relevant to any actual or potential 58
155155 conflicts of interest that are reasonably known to the 59
156156 neutral; and 60
157157 (3) If, after accepting a designation by th e parties 61
158158 or the court, the neutral learns of any previously 62
159159 undisclosed information that could reasonably suggest a 63 SB 256 6
160160 conflict of interest, promptly disclose the information to 64
161161 the parties. 65
162162 5. After the neutral's disclosure of a conflict, the 66
163163 alternative dispute resolution process may proceed if: 67
164164 (1) All parties agree in writing to service by the 68
165165 neutral; or 69
166166 (2) An organization independently administering the 70
167167 alternative dispute resolution process pursuant to the rules 71
168168 of procedure that were adopted by a written agreement of the 72
169169 parties determines under such rules that the neutral may 73
170170 continue to serve. 74
171171 6. Any party who believes a court -appointed neutral 75
172172 has a conflict of interest may request that the neutral 76
173173 recuse himself or herself if a conflict is disclosed or 77
174174 otherwise discovered. If the neutral declines, the party 78
175175 may timely file a motion with the court for disqualification 79
176176 of the neutral. Failure to file a motion waives that 80
177177 objection. On its own motion, the co urt may also review the 81
178178 choice of a neutral in any alternative dispute resolution 82
179179 process involving a party that is not represented by counsel 83
180180 and require a change of neutral if necessary to protect the 84
181181 rights of the unrepresented party. 85
182182 435.306. 1. Alternative dispute resolution 1
183183 communications shall not be admissible as evidence in any 2
184184 proceeding or subject to discovery, except as otherwise 3
185185 provided in subsections 2, 3, and 7 of this section. 4
186186 Exceptions shall be narrowly const rued and only the portion 5
187187 of the communication necessary for the application of the 6
188188 exception to the general rule of nonadmissibility shall be 7
189189 admitted. 8
190190 2. Evidence or information that is otherwise 9
191191 admissible or subject to discovery, including in formation 10 SB 256 7
192192 that would be available to the public pursuant to sections 11
193193 610.010 to 610.035, shall not become inadmissible or 12
194194 protected from discovery solely by reason of its disclosure 13
195195 or use in an alternative dispute resolution process. 14
196196 3. A court may admit an alternative dispute resolution 15
197197 communication upon motion of a party, which motion shall not 16
198198 reveal the substance of the communication, and following a 17
199199 hearing, only if the court finds that one or more of the 18
200200 exceptions in this subsection a pply and that the 19
201201 communication is otherwise relevant and admissible. The 20
202202 party seeking admission shall ensure that timely notice is 21
203203 given to the neutral and parties that participated in the 22
204204 alternative dispute resolution process in which the 23
205205 alternative dispute resolution communication was made. The 24
206206 hearing shall be conducted in camera if requested by a party 25
207207 or if the court determines on its own motion that an in 26
208208 camera proceeding is necessary to ensure the confidentiality 27
209209 of the communications that are the subject to the hearing. 28
210210 The only exceptions to the general rule of nonadmissibility 29
211211 of alternative dispute resolution communications stated in 30
212212 subsection 1 of this section are as follows: 31
213213 (1) The alternative dispute resolution commu nication 32
214214 was made in the presence of a mandated reporter and pertains 33
215215 to abuse or neglect that such mandated reporter is required 34
216216 by state law or regulation to report; 35
217217 (2) The alternative dispute resolution communication 36
218218 is a substantial threat o r statement of a plan to inflict 37
219219 bodily injury capable of causing death or substantial bodily 38
220220 harm that is reasonably certain to occur; 39
221221 (3) The alternative dispute resolution communication 40
222222 is intentionally used to plan a crime, attempt to commit a 41 SB 256 8
223223 crime, or to conceal an ongoing crime or ongoing criminal 42
224224 activity; or 43
225225 (4) The alternative dispute resolution communication 44
226226 is necessary to establish or defend against a claim of 45
227227 professional misconduct or malpractice that is filed against 46
228228 or on behalf of a participant based on conduct occurring 47
229229 during the alternative dispute resolution process. 48
230230 4. The admission of evidence in a proceeding under any 49
231231 of the exceptions stated in subsection 3 of this section 50
232232 shall not in itself render the evidence or any other 51
233233 alternative dispute resolution communication discoverable or 52
234234 admissible for any other purpose or proceeding. 53
235235 5. Any participant in an alternative dispute 54
236236 resolution process has standing to intervene in any 55
237237 proceeding to object to the admissibility of an alternative 56
238238 dispute resolution communication made by that participant 57
239239 during or relating to that alternative dispute resolution 58
240240 process. A neutral who participated in an alternative 59
241241 dispute resolution process also has sta nding to intervene in 60
242242 any proceeding to object to the admissibility of an 61
243243 alternative dispute resolution communication made by the 62
244244 neutral or an agent or employee of a neutral or of an 63
245245 organization through which the neutral provided the 64
246246 alternative dispute resolution services for such process, 65
247247 but the neutral is under no requirement to do so. 66
248248 6. Except as provided in subsection 7 of this section, 67
249249 no neutral, agent or employee of that neutral, or agent or 68
250250 employee of an organization through whi ch the neutral 69
251251 provided alternative dispute resolution services shall be 70
252252 subpoenaed or otherwise compelled to disclose any 71
253253 alternative dispute resolution communication, including any 72
254254 alternative dispute resolution communication that would 73 SB 256 9
255255 otherwise fall within the exceptions identified in 74
256256 subsection 3 of this section. No neutral who is a licensed 75
257257 attorney, nor an agent or employee of such neutral or of an 76
258258 organization through which the neutral provided alternative 77
259259 dispute resolution services pursu ant to sections 435.300 to 78
260260 435.312, shall be required to disclose any alternative 79
261261 dispute resolution communication to which a reporting 80
262262 obligation might otherwise apply under the rules regulating 81
263263 the professional conduct of attorneys. 82
264264 7. A neutral, an agent or employee of that neutral, or 83
265265 an agent or employee of an organization through which the 84
266266 neutral provided the alternative dispute resolution services 85
267267 may be subpoenaed in an action to enforce a written 86
268268 agreement as described in subsection 2 of section 435.309, 87
269269 but only for the limited purpose of testifying that the 88
270270 written agreement was signed by the parties in the presence 89
271271 of the neutral. 90
272272 8. The court may request that the neutral or the 91
273273 parties provide the court with progress rep orts on 92
274274 alternative dispute resolution processes related to pending 93
275275 civil actions, except such reports shall be limited to a 94
276276 statement that the matter has been resolved in its entirety, 95
277277 partially resolved, or not resolved and whether future dates 96
278278 for an alternative dispute resolution process are 97
279279 scheduled. A neutral may also report to the court that a 98
280280 payment has not been received from one or more parties. A 99
281281 court shall not require the disclosure of alternative 100
282282 dispute resolution communication in any such report. 101
283283 9. The court may order the party or parties seeking 102
284284 admission of an alternative dispute resolution communication 103
285285 to pay the costs and fees of the neutral or other person 104
286286 participating in an alternative dispute resolution process 105 SB 256 10
287287 who intervenes to contest the disclosure and admission of 106
288288 alternative dispute resolution communication or who responds 107
289289 to a subpoena prohibited by subsection 6 of this section or 108
290290 a subpoena pursuant to subsection 7 of this section. 109
291291 435.309. 1. Unless the parties have entered into a 1
292292 written agreement providing for entry into a binding 2
293293 alternative dispute resolution process, all alternative 3
294294 dispute resolution processes pursuant to sections 435.300 to 4
295295 435.312 shall be nonbinding. 5
296296 2. In order to be binding on the parties, a settlement 6
297297 agreement that is reached in an alternative dispute 7
298298 resolution process shall be in a written agreement. 8
299299 3. Alternative dispute resolution processes included 9
300300 in consumer contracts for good s or services shall be 10
301301 independently administered. 11
302302 435.312. 1. Except as provided in subsection 6 of 1
303303 this section, sections 435.300 to 435.312 shall apply only 2
304304 to those alternative dispute resolution processes referred 3
305305 by rule or court order, or when the parties enter into a 4
306306 written agreement to resolve their dispute through an 5
307307 alternative dispute resolution process expressly providing 6
308308 that sections 435.300 to 435.312 shall apply to such 7
309309 alternative dispute resolution process. 8
310310 2. The parties to a dispute may enter into a written 9
311311 agreement to attempt to resolve their differences through an 10
312312 alternative dispute resolution process and may agree that 11
313313 sections 435.300 to 435.312 will apply to such alternative 12
314314 dispute resolution process before the filing of an action or 13
315315 after the entry of a judgment, as well as during the 14
316316 pendency of an action. If the matter resolves and the 15
317317 parties file a case to present the settlement for approval 16
318318 by the court, the case shall be exempted from any local rule 17 SB 256 11
319319 that refers a class of cases to any alternative dispute 18
320320 resolution process. 19
321321 3. Nothing in sections 435.300 to 435.312 shall 20
322322 preclude any court from referring any individual matter to a 21
323323 nonbinding alternative dispute resolutio n process so as to 22
324324 effectuate the timely, fair, and efficient administration of 23
325325 justice, subject only to the provisions of subsection 2 of 24
326326 section 435.303. 25
327327 4. Nothing in sections 435.300 to 435.312 is intended 26
328328 to undermine the right of litigants to a jury trial in the 27
329329 event that a resolution satisfactory to the parties is not 28
330330 achieved through a nonbinding alternative dispute resolution 29
331331 process. 30
332332 5. Nothing in sections 435.300 to 435.312 shall be 31
333333 deemed to require: 32
334334 (1) Any party or party representative who appears at 33
335335 an alternative dispute resolution process in compliance with 34
336336 a court order to settle all or part of any claim; or 35
337337 (2) Any party to attend a mediation with counsel if 36
338338 such party is self-represented. 37
339339 6. If the court has not referred the case to an 38
340340 alternative dispute resolution process pursuant to section 39
341341 435.303 or if the parties do not elect to use sections 40
342342 435.300 to 435.312, the process shall be regarded as 41
343343 settlement negotiations and subject to the ru les of 42
344344 confidentiality that generally apply to such negotiations. 43
345345 If the parties to the dispute have agreed in writing to 44
346346 submit their dispute to such alternative dispute resolution 45
347347 process but have not invoked the protections of sections 46
348348 435.300 to 435.312, no person who serves as a neutral in 47
349349 such process, nor any agent or employee of that person or of 48
350350 an organization through which the neutral provided the 49 SB 256 12
351351 alternative dispute resolution process, shall be subpoenaed 50
352352 or otherwise compelled to disc lose any matter revealed in 51
353353 the process of setting up or conducting such alternative 52
354354 dispute resolution process. All settlement agreements shall 53
355355 be in writing as described in sections 435.300 to 435.312. 54
356356 [435.014. 1. If all the parties to a 1
357357 dispute agree in writing to submit their dispute 2
358358 to any forum for arbitration, conciliation or 3
359359 mediation, then no person who serves as 4
360360 arbitrator, conciliator or mediator, nor any 5
361361 agent or employee of that person, shall be 6
362362 subpoenaed or otherwise compelled to disclose 7
363363 any matter disclosed in the process of setting 8
364364 up or conducting the arbitration, conciliation 9
365365 or mediation. 10
366366 2. Arbitration, conciliation and mediation 11
367367 proceedings shall be regarded as settlement 12
368368 negotiations. Any communication relating to the 13
369369 subject matter of such disputes made during the 14
370370 resolution process by any participant, mediator, 15
371371 conciliator, arbitrator or any other person 16
372372 present at the dispute resolution shall be a 17
373373 confidential communication. No admission, 18
374374 representation, statement or other confidential 19
375375 communication made in setting up or conducting 20
376376 such proceedings not otherwise discoverable or 21
377377 obtainable shall be admissible as evidence or 22
378378 subject to discovery. ] 23
379379