Missouri Court of Appeals, Western District / Nov 24, 2020
Steven Pinkerton vs. Technical Education Services, Inc.
Steven Pinkerton sued Technical Education Services, Inc. (AIM) for fraud and misrepresentation. AIM moved to compel arbitration, which was initially granted by the trial court and affirmed by the Missouri Supreme Court, delegating arbitrability issues to an arbitrator. The arbitrator subsequently found the arbitration agreement unconscionable and unenforceable, dismissing the arbitration. Pinkerton then voluntarily dismissed his lawsuit without prejudice and refiled it. AIM again moved to compel arbitration, but the trial court denied the motion, finding AIM collaterally estopped by the arbitrator's decision. The appellate court affirmed the trial court's order, holding that the trial court properly determined the collateral estoppel effect of the arbitrator's decision, which constituted a judgment on the merits, and that Pinkerton's voluntary dismissal did not vacate it.