Non-Signatories

News & Analysis as of

District Court Grants Motion To Stay Pending Arbitration Over Non-Signatory’s Opposition

In late August, a federal district court in Louisiana granted a group of defendants’ motion to stay pending arbitration. Plaintiff alleged breach of fiduciary duty, negligence, and fraud in connection with a trust account set...more

Court Enforces Five-Year Noncompete Agreement in Connection With Sale of Business

Employers drafting and seeking to enforce noncompete agreements struggle with structuring the temporal and geographic scope of the proposed noncompete covenant. The Texas Supreme Court has wrestled over the last few years to...more

Direct Benefits Estoppel: 7th Cir. Explains How You Can Be Compelled To Arbitrate Without Agreeing To Do So

Everyone knows that you can’t be compelled to arbitrate a dispute unless you’ve agreed to do so. But what everyone knows is sometimes wrong. There are situations in which a person has to arbitrate even though she didn’t sign...more

Third Circuit Reaffirms the Difficulty of Binding a Non-Signatory to Arbitration

Federal law’s much-talked-about presumption in favor of enforcing arbitration clauses has its limits. On August 11, 2014, the United States Court of Appeals for the Third Circuit identified one of those limitations: the...more

Eighth Circuit Finds Incorporation Of AAA Rules Authorizes Arbitrator To Determine Whether Non-Signatory Can Arbitrate

In a short and sweet opinion issued just six weeks after argument, the Eighth Circuit yesterday held that an arbitrator was authorized to decide whether a non-signatory was able to arbitrate a dispute. Eckert/Wordell...more

Courts Stopping Non-Signatories From Compelling Arbitration Through Equitable Estoppel

Now that we know the Supreme Court is not going to be addressing non-signatories’ ability to compel arbitration this term (at least not in the Toyota case), we can take a moment to look at what lower courts are doing with...more

Eighth Circuit Rules Equitable Estoppel Doctrine Cannot Be Used to Compel Non-Signatories to an Arbitration Agreement into...

Arbitration in the context of antitrust class action litigation continues to be a front and center issue for the federal appeals courts. (See this blog’s discussion of a Third Circuit decision from late last year, In re...more

Non-Signatories Lose In Two Federal Circuits When Trying To Enforce Arbitration

Two federal circuit courts recently reversed district court decisions allowing non-signatories to compel arbitration. The analysis emphasizes that for a defendant to prove equitable estoppel compels arbitration, the...more

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