Mont. Code Ann. » TITLE 27. CIVIL LIABILITY, REMEDIES, AND LIMITATIONS · CHAPTER 5. UNIFORM ARBITRATION ACT · Part 1. Submission to Arbitration
Montana Code Annotated

Mont. Code Ann. § 27-5-114 (2026)

Validity Of Arbitration Agreement -- Exceptions

✓ current as of May 2026
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  1. MCA Contents
  2. TITLE 27
  3. CHAPTER 5
  4. Part 1
  5. 27-5-114 Validity of arbitration agreement -- exceptions

TITLE 27. CIVIL LIABILITY, REMEDIES, AND LIMITATIONS

CHAPTER 5. UNIFORM ARBITRATION ACT

Part 1. Submission to Arbitration

Validity Of Arbitration Agreement -- Exceptions

27-5-114. Validity of arbitration agreement -- exceptions. (1) A written agreement to submit an existing controversy to arbitration is valid and enforceable except upon grounds that exist at law or in equity for the revocation of a contract.

(2) A written agreement to submit to arbitration any controversy arising between the parties after the agreement is made is valid and enforceable except upon grounds that exist at law or in equity for the revocation of a contract. Except as permitted under subsection (3), this subsection does not apply to:

(a) claims arising out of personal injury, whether based on contract or tort;

(b) any contract by an individual for the acquisition of real or personal property, services, or money or credit when the total consideration to be paid or furnished by the individual is $5,000 or less;

(c) any agreement concerning or relating to insurance policies or annuity contracts except for those contracts between insurance companies; or

(d) claims for workers' compensation.

(3) A written agreement between members of a trade or professional organization to submit to arbitration any controversies arising between members of the trade or professional organization after the agreement is made is valid and enforceable except upon grounds that exist at law or in equity for the revocation of a contract.

History: En. Sec. 4, Ch. 684, L. 1985; amd. Sec. 1, Ch. 236, L. 1989; amd. Sec. 1, Ch. 611, L. 1989; amd. Sec. 1, Ch. 19, L. 1997.

Notes of Decisions
Cited in 48 cases (9 in the last 5 years), 1988–2026 · leading case: Graziano v. Stock Farm Homeowners Ass'n, 2011 MT 194 (Mont. 2011).
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Graziano v. Stock Farm Homeowners Ass'n, 2011 MT 194 (Mont. 2011). · cites it 26× “Section 27-5-114, MCA, provides, in relevant part: Validity of arbitration agreement—exceptions.”
Topolski v. Helena Ass'n of Realtors®, Inc., 2000 MT 343 (Mont. 2000). · cites it 38× “It provides: (1) A written agreement to submit an existing controversy to arbitration is valid and enforceable except upon grounds that exist at law or in equity for the revocation of a contract.”
Casarotto v. Lombardi, 901 P.2d 596 (Mont. 1995). · cites it 28× “" Section 27-5-114(1), MCA. The notice requirement of subsection (4) merely protects the consumer by requiring that notice of an arbitration provision be conspicuously placed on the front page of the contract.”
Kelker v. Geneva-Roth Ventures, Inc., 2013 MT 62 (Mont. 2013). · cites it 20× “3d 694 ; § 27-5-114, MCA. Federal policy similarly places arbitration agreements on equal footing with other contracts.”
Peeler v. Rocky Mountain Log Homes Can., Inc., 431 P.3d 911 (Mont. 2018). · cites it 10× “See § 27-5-114, MCA. ¶13 On application of a party for enforcement of an arbitration ***407 agreement governed by the FAA or MUAA, a district court must proceed summarily to determine the issue and shall accordingly order or deny arbitration.”
City of Cut Bank v. Tom Patrick Constr., Inc., 1998 MT 219 (Mont. 1998). · cites it 32× “Cut Bank objected to arbitration proceedings, asserting that no valid contract for arbitration existed because the construction contract did not comply with § 27-5-114(4), MCA (1993), which required that notice that a contract is subject to arbitration be typed in underlined…”
Ratchye v. Lucas, 1998 MT 87 (Mont. 1998). · cites it 15× “Furthermore, when a party moves for arbitration under a valid agreement as described by § 27-5-114, MCA, and the opposing party refuses to arbitrate, a district court must order the parties to proceed with arbitration.”
Chor v. Piper, Jaffray & Hopwood, Inc., 862 P.2d 26 (Mont. 1993). · cites it 12× “w disclosure requirements under the Rules of the National Association of Securities Dealers; Chor did not intend that the arbitration clause would be utilized in the event that she was defrauded by Piper or one of its agents; the Co-owner Account Agreements are adhesion…”
Burkhart v. Semitool, Inc., 2000 MT 201 (Mont. 2000). · cites it 10× “Section 27-5-114, MCA. A court may rescind a written contract under circumstances such as mistake, duress, menace, fraud, undue influence, failure of consideration, void consideration, or lack of consent of the parties.”
Doctor's Assocs., Inc. v. Casarotto, 517 U.S. 681 (1996). · cites it 2× “” Mont. Code Ann. §27-5-114 (4) (1995). The question here presented is whether Montana’s law is compatible with the federal Act.”
Kortum-Managhan v. HERBERGERS NBGL, 2009 MT 79 (Mont. 2009). · cites it 4× “3d 1031 (citing § 27-5-114, MCA). Moreover, "[a] district court may not decide the merits of a case when a valid agreement requires the parties to a dispute to submit to arbitration.”
King v. Bryant, 795 S.E.2d 340 (N.C. 2017). · cites it 2× “, dissenting at 683 (quoting Mont. Code Ann. § 27-5-114 (4) (1995)); id.”
Show all 48 citing cases →
Mont. Code Ann. § 27-5-114(1): 4 cases
Topolski v. Helena Ass'n of Realtors®, Inc., 2000 MT 343 (Mont. 2000). “It provides: (1) A written agreement to submit an existing controversy to arbitration is valid and enforceable except upon grounds that exist at law or in equity for the revocation of a contract.”
Casarotto v. Lombardi, 901 P.2d 596 (Mont. 1995). “" Section 27-5-114(1), MCA. The notice requirement of subsection (4) merely protects the consumer by requiring that notice of an arbitration provision be conspicuously placed on the front page of the contract.”
Frates v. Edward D. Jones & Co., 760 P.2d 748 (Mont. 1988).
McCoy (Bankr. D. Mont. 2026).
Mont. Code Ann. § 27-5-114(2): 10 cases
Peeler v. Rocky Mountain Log Homes Can., Inc., 431 P.3d 911 (Mont. 2018). “See § 27-5-114, MCA. ¶13 On application of a party for enforcement of an arbitration ***407 agreement governed by the FAA or MUAA, a district court must proceed summarily to determine the issue and shall accordingly order or deny arbitration.”
Kelker v. Geneva-Roth Ventures, Inc., 2013 MT 62 (Mont. 2013). “3d 694 ; § 27-5-114, MCA. Federal policy similarly places arbitration agreements on equal footing with other contracts.”
Woodruff v. Bretz, Inc., 2009 MT 329 (Mont. 2009).
Tedesco v. Home Sav. Bancorp, Inc., 2017 MT 304 (Mont. 2017).
Willems v. U. S. Bancorp Piper Jaffray, Inc., 2005 MT 37 (Mont. 2005).
Mont. Code Ann. § 27-5-114(2)(a): 2 cases
Graziano v. Stock Farm Homeowners Ass'n, 2011 MT 194 (Mont. 2011). “Section 27-5-114, MCA, provides, in relevant part: Validity of arbitration agreement—exceptions.”
Peeler v. Rocky Mountain Log Homes Can., Inc., 431 P.3d 911 (Mont. 2018). “See § 27-5-114, MCA. ¶13 On application of a party for enforcement of an arbitration ***407 agreement governed by the FAA or MUAA, a district court must proceed summarily to determine the issue and shall accordingly order or deny arbitration.”
Mont. Code Ann. § 27-5-114(2)(b): 1 case
Kelker v. Geneva-Roth Ventures, Inc., 2013 MT 62 (Mont. 2013). “3d 694 ; § 27-5-114, MCA. Federal policy similarly places arbitration agreements on equal footing with other contracts.”
Mont. Code Ann. § 27-5-114(2)(c): 3 cases
William v. Sec. Union Title Ins., 1998 MT 335 (Mont. 1998).
Moeller v. The Aliera Companies (D. Mont. 2021).
Bixler v. Next Fin. Grp., Inc., 858 F. Supp. 2d 1136 (D. Mont. 2012).
Mont. Code Ann. § 27-5-114(3): 2 cases
Topolski v. Helena Ass'n of Realtors®, Inc., 2000 MT 343 (Mont. 2000). “It provides: (1) A written agreement to submit an existing controversy to arbitration is valid and enforceable except upon grounds that exist at law or in equity for the revocation of a contract.”
Burkhart v. Semitool, Inc., 2000 MT 201 (Mont. 2000). “Section 27-5-114, MCA. A court may rescind a written contract under circumstances such as mistake, duress, menace, fraud, undue influence, failure of consideration, void consideration, or lack of consent of the parties.”
Mont. Code Ann. § 27-5-114(4): 13 cases
Casarotto v. Lombardi, 901 P.2d 596 (Mont. 1995). “" Section 27-5-114(1), MCA. The notice requirement of subsection (4) merely protects the consumer by requiring that notice of an arbitration provision be conspicuously placed on the front page of the contract.”
City of Cut Bank v. Tom Patrick Constr., Inc., 1998 MT 219 (Mont. 1998). “Cut Bank objected to arbitration proceedings, asserting that no valid contract for arbitration existed because the construction contract did not comply with § 27-5-114(4), MCA (1993), which required that notice that a contract is subject to arbitration be typed in underlined…”
Keystone, Inc. v. Triad Sys. Corp., 1998 MT 326 (Mont. 1998).
Ratchye v. Lucas, 1998 MT 87 (Mont. 1998). “Furthermore, when a party moves for arbitration under a valid agreement as described by § 27-5-114, MCA, and the opposing party refuses to arbitrate, a district court must order the parties to proceed with arbitration.”
Holm-Sutherland Co., Inc. v. Town of Shelby, 1999 MT 150 (Mont. 1999).
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