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Arbitration Non-Signatories

Arbitration is a widely-used method for settling disputes between parties. During arbitration, parties submit their dispute to an impartial third person or party, usually chosen by the parties. Typically, parties... more +
Arbitration is a widely-used method for settling disputes between parties. During arbitration, parties submit their dispute to an impartial third person or party, usually chosen by the parties. Typically, parties to arbitration agree in advance to be bound by the arbitrator's decision. Arbitration is an alternative to litigation, but it shares many of the familiar features of litigation. Namely, parties to arbitration hold hearings before neutral decision-makers, present evidence and argue the merits of their position. Parties often choose arbitration due to its perceived advantages over litigation. Those perceived advantages include greater efficiency and flexibility, and lower costs. less -
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

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

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

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

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

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

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

Miller Canfield

Ninth Circuit Underscores the Need for Careful Drafting of International Arbitration Clauses

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Can a non-signatory to an arbitration agreement compel international arbitration under the doctrine of equitable estoppel? Last year, in GE Energy Power Conversion France SAS v. Outokumpu Stainless USA, LLC, 140 S. Ct. 1637...more

McDermott Will & Emery

Ninth Circuit Still Signals Shift in Arbitration Landscape for Non-Signatories

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In a decision substantively the same as the now-withdrawn opinion entered on January 20, 2021, the US Court of Appeals for the Ninth Circuit once again affirmed denial of a non-signatory’s motion to compel arbitration. Setty...more

McDermott Will & Emery

Ninth Circuit Withdraws Opinion That Signaled Shift in Arbitration Landscape for Non-Signatories

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The US Court of Appeals for the Ninth Circuit issued an order withdrawing its opinion in Setty v. Shrinivas Sugandhalaya, where the Court affirmed the denial of a non-signatory’s bid to arbitrate its claims for trademark...more

Jackson Lewis P.C.

Ninth Circuit Upholds Arbitration For Non-Signatory Defendant

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California law is not typically seen as amiable to compelling employees to arbitrate their claims. However, in Franklin v. Community Regional Medical Center, ___ F.3d___(9th Cir. 2021), the Ninth Circuit panel upheld a motion...more

Rumberger | Kirk

Kratos Investments vs. ABS Healthcare: Third DCA Confirms Enforceability of Arbitration Provision by Non-Signatory

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When it comes to arbitration provisions, you may get more than you bargained for. The Third District Court of Appeals recently confirmed that by signing an arbitration provision, the signatory may be forced to arbitrate by a...more

McDermott Will & Emery

In Setty, Ninth Circuit Signals Shift in Arbitration Landscape for Non-Signatories

The US Court of Appeals for the Ninth Circuit tackled the question of whether non-signatories to an agreement may use state law doctrines to compel arbitration. Holding that the claims were insufficiently “intertwined” to...more

Womble Bond Dickinson

Court Grants Motion to Compel Arbitration of Claims of Non-Signatory to Contract

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In Shelton v. Comcast Corp., No. 20-1763, 2021 U.S. Dist. LEXIS 10790 (E.D. Pa. Jan. 21, 2021), the U.S. District Court for the Eastern District of Pennsylvania granted Comcast’s motion to compel arbitration under the terms...more

Mintz - Arbitration, Mediation, ADR...

Lessons From Above: SCOTUS Declines to Review a Class Arbitrability Case (the Issue Had Been Delegated to an Arbitrator)

In its restraint, SCOTUS has shown us the mischief that arbitrators may do if parties are lax in setting boundaries in their agreement to arbitrate. By declining to grant certiorari regarding the Second Circuit’s most recent...more

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