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Non-Signatories

Foley & Lardner LLP

Non-Signatory Bound to an Agreement’s Arbitration Clause

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In Ice Rak, LLC v. Rita’s Franchise Co., LLC, the Court enforced an arbitration agreement against a non-signatory of the same agreement because courts will consider the significance of the franchisees’ actions and...more

Lewitt Hackman

Franchisee 101: Frozen Out of Court

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A Florida district court granted a motion to stay court proceedings pending arbitration between a franchisor and a third-party, non-signatory to a franchise agreement, containing an arbitration clause....more

Lowndes

Will Recorded Covenants Hold and Remain Binding on Successors in Title to Real Property? A Pivotal Certified Question Heads to the...

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Breaking news from the United States Court of Appeals for the Eleventh Circuit involving the case of RJ's International Trading, LLC vs. Crown Castle South, LLC. The court has certified a pivotal question to the Florida...more

McGlinchey Stafford

Am I Bound by My Client’s Settlement Agreement? - McGlinchey Commercial Law Bulletin - March 8, 2024

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In this appeal, the Eleventh Appellate District affirmed the trial court’s decision to grant the defendant summary judgment, finding, among other things, that equitable estoppel was a defense, not affirmative cause of action....more

Snell & Wilmer

Nevada Recognizes the Ability of Non-Signatories to Compel Arbitration

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In a recent case of first impression in Nevada, the Nevada Supreme Court found en banc that a nonsignatory to an arbitration agreement may compel another nonsignatory to arbitrate...more

McGlinchey Stafford

Can a Non-Signatory Be Compelled to Arbitrate? - McGlinchey Commercial Law Bulletin - January 26, 2024

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Conditions Precedent- In this appeal, the Eighth Appellate Court affirmed in part the trial court’s determination that Defendant breached its contract with Plaintiff disagreeing with Defendant-appellant that Plaintiff failed...more

A&O Shearman

No ink, no issue: can you enforce a contract you didn’t sign?

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A joint venture company was able to enforce a joint venture agreement despite not being a direct party or signatory to it. Canon Medical Systems, a manufacturer of medical imaging equipment, entered into an agreement with...more

Carlton Fields

Broker Obtains Preliminary Injunction Enjoining FINRA Arbitration Initiated by Non-Signatories to Arbitration Agreement

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Interactive Brokers LLC filed an action in the Southern District of New York seeking preliminary and permanent injunctions against an arbitration proceeding initiated by a group of non-signatories to an agreement between...more

Carlton Fields

Court Confirms Arbitration Award Against Non-Signatory Intervening Party in Arbitration

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Paychex Inc. had entered into an agreement to provide a company, Dan-Gulf Shipping Inc., with payroll-related services. The agreement contained an arbitration clause governed by the rules of the American Arbitration...more

Tucker Arensberg, P.C.

No Signature, No Problem: How Conduct Can Bind an Employer to an Agreement

Tucker Arensberg, P.C. on

In a recent case involving the Steelworkers Pension Trust (the “SPT”) versus Republic Steel, a federal magistrate judge in the Western District of Pennsylvania ordered Republic Steel to pay the SPT nearly $1.4 million for...more

JAMS

Arbitrating With Nonsignatories: Celebrity Edition

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Kim Kardashian and Tiger Woods are international celebrities, and they have something else in common. Both have been involved in disputes regarding arbitrating with nonsignatories to an arbitration agreement. The idea of...more

Lathrop GPM

California Court of Appeals Denies Manufacturer’s Motion to Compel Arbitration Under Sales Contract to Which It Was Not a Party

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The California Court of Appeals for the Second District, creating a split of authority among California’s appellate courts, held that Ford Motor Co. did not have the right to enforce an arbitration provision in a sales...more

Benesch

DCD Compels Arbitration for TCPA Class Action Despite Being Non-Signatory to Agreement

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The District of Massachusetts’s recent decision in Fairfield v. DCD Auto. Holdings, Inc., No. 22-cv-11977, 2023 U.S. Dist. LEXIS 109463 (D. Mass. June 26, 2023) serves as a key reminder for businesses not only to have...more

Lathrop GPM

Arizona Federal Court Declines to Enforce Noncompete Provisions Against Nonsignatories

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A federal court in Arizona recently denied preliminary relief enforcing franchisees’ noncompete provisions against nonsignatories to the franchise agreement because the franchisor failed to present sufficient evidence that...more

Lathrop GPM

Oregon Federal Court Holds Nonsignatory Owners Are Not Subject to Arbitration Provision

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In a case involving an unorthodox procedural posture, a federal court in Oregon determined that nonsignatory franchisee owners are not subject to a franchise agreement arbitration provision. Goergen v. Black Rock Coffee B.,...more

Bradley Arant Boult Cummings LLP

It’s a Family Affair: SCOTX Compels Non-Signatory Minor Children to Arbitrate Their Construction Defect Claims with Signatory...

A novel question arose over the past few years in residential construction law as to whether minors were subject to the contractual provisions in their parents’ purchase or construction contract. The contract typically has a...more

Carlton Fields

Sixth Circuit Holds That District Court Erred by Not Analyzing Whether Non-Signatory Consented to Arbitration

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The Sixth Circuit Court of Appeals recently vacated and remanded an order concluding that a party was not bound by an arbitration award after concluding that the district court failed to consider whether that party may have...more

White and Williams LLP

Where-Forum Art Thou? Is the Chosen Forum Akin to No Forum at All?

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Many courts enforce forum selection clauses in contracts between parties. In W. Bay Plaza Condo. Ass’n v. Sika Corp., No. 3D21-1834, 2022 Fla. App. LEXIS 1637 (W. Bay Plaza), the Court of Appeal of Florida, Third District...more

Farrell Fritz, P.C.

Binding Nonsignatories to Arbitration Agreements

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Closely-held business owners often hope to avoid the costs and delays of litigation by including arbitration provisions in their partnership, shareholder, and operating agreements. Things can get tricky, though, when...more

Carlton Fields

Ninth Circuit Agrees Non-Signatory Cannot Be Compelled to Arbitrate Under California Law

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Defendants appealed a California federal district court order denying their motion to compel arbitration of the plaintiff’s claims for trade secret misappropriation, common law misappropriation, and unfair competition. The...more

Carlton Fields

SDNY Rules Non-Signatories to Agreement May Compel Signatory to Arbitrate Issues of Arbitrability

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Plaintiffs, the Republic of Kazakhstan and Outrider Management LLC, filed suit in New York state court claiming the defendants conspired to obtain a fraudulent international arbitral award against them of nearly $500 million....more

Patton Sullivan Brodehl LLP

Attorney Fee Recovery by Third Parties Dragged into Commercial Lease Disputes

Commercial leases often contain attorney fee provisions allowing a party who prevails in litigation to recover attorney fees from the losing party. Can those attorney fee provisions apply to third parties — outsiders to...more

Carlton Fields

Second Circuit Affirms Denial of Motions to Compel Arbitration in Suit Against Trump Corp. and Trump Family

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The Second Circuit recently affirmed the denial of motions to compel arbitration filed by, inter alia, the Trump Corp. and a nonparty from whom the plaintiffs sought discovery....more

Carlton Fields

West Virginia Federal Court Refuses to Force Non-Signatory to Participate in Arbitration

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Mountain Valley Pipeline LLC (MVP) contracted with U.S. Trinity Energy Services LLC for the construction and installation of the Mountain Valley Pipeline across property in Greenbrier County, West Virginia. Trinity...more

Farrell Fritz, P.C.

When Faced with Questions of Arbitrability, the Suffolk County Commercial Division Passes the Ball to the Arbitrator

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In a recent Commercial Division case, Justice Elizabeth H. Emerson was asked to determine whether certain parties were bound by an arbitration clause and whether that arbitration clause applied to a particular controversy—two...more

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