Non-Signatories

News & Analysis as of

Applying The Statute Of Frauds Apply To “Et Al.”

Charles II, aka the “Merry Monarch”, was sitting on the English throne when the original Statute of Frauds was enacted in 1677. Therefore, one should be forgiven for the mistaken presumption that all questions involving the...more

Eleventh Circuit: Arbitration Clauses Are Like Makeup – They Only Cover So Much

The Kardashians, America’s favorite celebrity family, have been having a tough time of late, with Kim Kardashian being robbed at gunpoint in her Paris apartment, and her husband Kanye West attracting criticism for his support...more

Fifth Circuit Affirms Denial Of Motion To Compel Arbitration Against Non-Signatory To Arbitration Agreement

The appeal arose from a consolidated case, originally three separate class actions, resulting from the alleged underfunding of Singing River Health System’s pension plan and KPMG’s alleged failure to detect that underfunding...more

Kardashians Kept Out of Arbitration (and other recent arbitration news)

Just three weeks into the year and already my pile of arbitration cases is a skyscraper! So, I will cover a lot of ground in this update. First, the headline. Kimberly, Kourtney, and Khloe Kardashian moved to compel...more

The Tie that Binds: Enforceabliity of Merger Provisions Against Non-signatory Shareholders

The Predicament - One challenge encountered in M&A deals is how to bind all shareholders of the target company to all deal terms. For private companies with few shareholders, this is not much of a challenge. However,...more

Court Compels Non-Signatory Affiliates, But Not Broker, To Arbitrate Premium Payment Dispute

National Union Fire Insurance Company of Pittsburgh brought a petition in a New York federal court, to compel nine related companies to arbitrate a payment dispute relating to certain policies of insurance issued to the...more

Latest Developments in Arbitration for the Construction Law Practitioner

G. T. Leach Builders V. Sapphire V.P.: Non-Signatories’ Right to Compel Arbitration; Waiver of Right to Arbitrate - By far, the most recent, significant arbitration development for construction law practitioners was the...more

Arbitration Provision Enforced Against Non-Signatory Insurer

The court confirmed an award in favor of two affiliated power supplier companies (“Alstom”), against the subrogated insurer of one of their corporate customers damaged in an accident involving Alstom’s equipment. Alstom and...more

Alabama Acknowledges AAA Rules Authorize Arbitrator To Determine Whether Non-Signatory Is Bound

The Alabama Supreme Court has followed the Eighth Circuit’s lead, concluding that when the parties agree to arbitrate pursuant to the AAA Rules, they have clearly and unmistakably authorized the arbitrator to determine who is...more

Court Decides Successor In Merger May Enforce Arbitration Clause

Can a party to written agreement that does not include an arbitration clause enforce an arbitration provision in another agreement to which it is not a party? Boiled down to the essentials, this is the question decided...more

Bulletin: SAG-AFTRA Issues Member Alert to Organize Droga5

SAG-AFTRA’s pledge to increase efforts in enforcing the SAG-AFTRA Commercials Contract and the Radio Recorded Commercials Contract was on full display with its latest Member Alert to organize Droga5, a non-signatory ad...more

Interpreting Arbitration Agreements: Two Key Points from Recent Texas Supreme Court Decisions

The Texas Supreme Court recently added another opinion to its ever-growing body of law interpreting arbitration agreements. The opinion falls in line with prior decisions on two key issues: 1. what amounts to waiver of the...more

Party Waived Untimely Defense To Arbitration, Notwithstanding Party’s Claim That Counsel Committed Malpractice

The court confirmed an arbitration decision awarding damages in favor of workers compensation insurers against various insured employee-staffing companies. One of the defendant companies contended that it never executed the...more

TN COA: Arbitrators Decide Scope and Unconscionability

The Tennessee Court of Appeals at Jackson recently enforced a NY choice-of-law provision against an arbitration challenge, holding that courts determine contract-formation issues, while arbitrators decide the scope and...more

Third Party Bound By Arbitration Agreement Which It Never Signed

In the context of a right of direct action by an injured party (Spain and France) against a D&I insurer, in The London Steamship Owners' Mutual Insurance Association Ltd v The Kingdom of Spain & anr [2015] EWCA Civ 333, 1...more

Eighth Circuit Upholds Arbitration Agreement In Absence Of Actual Proof Of Unconscionability Due To Cost

The Eighth Circuit affirmed a decision by the U.S. District Court for the Eastern District of Missouri which rejected the contention that an arbitration agreement was unconscionable, and unenforceable under the Federal...more

Missouri Supreme Court “Calls an Audible,” Upholds Arbitration Agreement

In recent years, Missouri courts have seemed reluctant to enforce arbitration agreements entered into between employers and employees. But in a recent decision, the Missouri Supreme Court reversed that trend and compelled...more

A is for…Arbitration: Can A Non-Signatory To A Contract Enforce An Arbitration Provision In That Contract?

A corporate client is engaged in arbitration with a third party pursuant to an arbitration provision in the contract between the parties. An executive signed the contract “on behalf of” the company, but did not sign the...more

Arbitration’s Diamond in the Rough: Lessons from the Dichele Superior Court Ruling

In construction law, contracts are at the heart of our business; contracts between: owners and architects; owners and general contractors; contractors and subcontractors; and subcontractors and sub-subcontractors....more

Third Circuit Reverses Equitable Estoppel Ruling Compelling Arbitration Against Non-Signatory Insurer

The trial court had granted the motion to compel arbitration of Flintkote Company against one of its asbestos liability insurers, Aviva PLC, despite the fact that Aviva was a non-signatory to the subject Alternative Dispute...more

McWane, Inc. v. Lanier, C.A. No. 9488-VCP (Del. Ch. Jan. 30, 2015) (Parsons, V.C.)

In this memorandum opinion, the Court of Chancery denied defendants’ motion to dismiss or stay for lack of personal jurisdiction. The Court held that a mandatory forum selection clause in a merger agreement controlled over a...more

Seventh Circuit Speaks Again on How the Wisconsin Fair Dealership Law Applies in Arbitration

A few months ago, we commented on an aspect of the interaction between the Wisconsin Fair Dealership Law (WFDL), Wis. Stat. ch. 135, and arbitration, as discussed by the Seventh Circuit in Everett v. Paul Davis Restoration,...more

Court Of Chancery Explains Equitable Estoppel Jurisdiction

This decision explains how a non-party to a contract with a Delaware forum selection clause may still be subject to the Court’s jurisdiction under an equitable estoppel theory. ...more

In Battle Over Patents, Non-Signatory Ties Too Uncertain To Grant Motion To Dismiss

The District Court of Colorado recently denied Defendant Garmin International’s motions to dismiss and to stay pending arbitration, concluding that Plaintiff MSPBO was not bound by an arbitration agreement to which it was not...more

California’s “Third Party Litigation Exception” Not Preempted By The FAA

A California appellate court recently examined that state’s legislative response to the situation where a party moves to compel arbitration and some of the parties to the dispute are not parties to the arbitration agreement....more

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