Evidence problem keeps suit out of arbitration

Scott Lauck//June 2, 2009//

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A car dealership’s procedural error will keep a class action lawsuit out of arbitration.

Michael Ryan is the lead plaintiff in the suit, which claims Raytown Dodge charged a $99 document-preparation fee when it sold and financed his 2006 Dodge Ram 1500.

The suit claims the extra fee amounts to the unauthorized practice of law and is in violation of the Missouri Merchandising Practices Act. A number of similar lawsuits have been filed against dealerships across the state.

The dealership sought to compel arbitration, but Jackson County Circuit Judge Michael Manners denied the motion.

This morning, the Missouri Court of Appeals Western District said the Retail Installment Contract, which allegedly contained the arbitration clause, was never properly admitted into evidence although it was attached as an exhibit to the dealership’s pleadings.

“Raytown Dodge failed to establish that the Exhibit 1 was the parties’ Retail Installment Contract and, thus, failed to prove that an arbitration agreement compelling participation in arbitration existed between the parties,” Judge Vic Howard wrote. Judges James Welsh and Alok Ahuja concurred.

The case is Ryan v. Raytown Dodge Co., WD70012.

Click here to read the full text of this opinion.

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