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Mandatory
Arbitration Question |
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| In the continuing saga of lawsuits between Kenny Stewart's and
Charlie Schmitz's BSMs companies and their uplines, the
Missouri Court of Appeals, Southern District, on April 15, 2005 reversed Judge Sweeney's
decision and remanded both Missouri cases for entry of an order compelling arbitration. See Nitro Distributing, Inc., et al. v. Jimmy Dunn, et al., No. 26063 (Mo. Ct.App. Apr. 15, 2005  ); Netco, Inc., et al.
v. Jimmy Dunn, et. al., No. 26064 (Mo. Ct. App. Apr. 15, 2005 ). Over one year before on September 17, 2003
Missouri Circuit Court Judge Sweeney denied motions by
defendants to compel arbitration saying the arbitration agreement was "Fundamentally
Unfair and Unconscionable" . See related page.
As background, Kenny Stewart's Nitro Distributing and Charlie Schmitz's Netco
Inc, sued their ProNet upline for pyramiding and breach of contract in Missouri
State Court in Feb, of 2003 Case No.
101CC4530 On April 29, 2005, the plaintiffs in those cases Motions for Rehearing En Banc and Applications
for Transfer to the state Supreme Court
because, among other things, the Southern District Appellate Court improperly made factual
findings despite the existence of genuine issues of material fact (in other words,
credibility determinations on conflicting affidavits), and because those cases raise an
important issue of first impression in Missouri, i.e., whether
plaintiffs in a state court action are entitled to a jury trial on disputed issues of fact
as required by the Federal Arbitration Act, 9 U.S.C. § 4, and/or Missouri statute.
The question of mandatory arbitration related to Quixtar and the BSM's business is being considered now in at least three courts.
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