Can a Non-Signatory Be Compelled to Arbitrate? 

From JDSupra, Joseph Apatov, Taylor Bennington, James Sandy,  and Alyssa Weiss discuss a case under Florida law that addresses when a non-signatory can be forced to arbitrate claims Joseph, Taylor, James and Alyssa write:


Binding Non-Signatories to Arbitration Agreements

Paquin v. Campbell, No. 5d22-2859 (Fla. 5th DCA January 19, 2024)

The Fifth District examined whether non-signatories to a contract were subject to arbitration agreements contained therein under the theory of equitable estoppel.

The Bullet Point: In the arbitration context, equitable estoppel provides that a party to a lawsuit cannot rely on a contract to establish his claims while avoiding the obligation under the contract to arbitrate such claims. Accordingly, equitable estoppel binds a non-signatory to arbitration in two situations: (1) if a non-signatory sues a signatory to a contract for breach of contract, or (2) if the non-signatory has directly benefitted from the contract. At issue in this case is whether the appellants, non-signatories to the subject contract, were bound to arbitration under equitable estoppel. The Fifth District concluded that they were not, reasoning that (1) the appellants did not sue the appellees for breach or enforcement of the subject contracts, and (2) the appellants have not directly benefitted and do not seek to directly benefit from the contracts. Therefore, the order compelling arbitration was reversed.

Source: Can a Non-Signatory Be Compelled to Arbitrate? – McGlinchey Commercial Law Bulletin – January 26, 2024 | McGlinchey Stafford – JDSupra

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