Category: Arbitration: Nonsignatories

Arbitration, Automobiles, Nonsignatories: Cal Sup Ct Ruled Ford Could Not Arbitrate Via Dealer Arbitration Agreement With Customer

The Court Disapproved of Felisilda v. FCA US LLC (2020) To The Extent It Suggested Manufacturers Could Make Use Of Dealers' Arbitration Clauses.         An issue knocking about in California Courts of Appeal has been whether Ford Motor Company and other automobile manufacturers could piggyback off arbitration clauses found in the contracts between dealerships and […]

Nonsignatories: Employer Could Not Take Advantage Of Arbitration Agreement In A Temporary Staffing Agency’s Contract

Equitable Estoppel, Third-Party Beneficiary, And Agency Arguments Of Employer Failed To Gain Traction.         Nelida Soltero sued her employer, which sought to compel arbitration, based on an arbitration agreement in a contract between Soltero and Real Time Staffing Services, a temporary worker staffing agency. However, the employer was not a signatory to the agreement between […]

Automobiles, Nonsignatories: Fourth Dist. Div. 2 Rejects Equitable Estoppel Doctrine Of Felisilda

One More California Appellate Case Rejects Felisilda.         We have written before about courts rejecting the application of the equitable estoppel doctrine to allow vehicle manufacturers to piggyback on to the arbitration provision in sales contracts between customers and automobile dealerships. In Davis v. Nissan North America, Inc. v. Nissan North America, Inc., D083006 (4/1  […]

Automobiles, Nonsignatories: Hyundai Is Unable To Piggback Onto Dealership’s Arbitration Agreement

California Court of Appeal, 3rd District, Disagrees With California Court of Appeal, 3rd District.         A Third District California Court of Appeal panel composed of Justices Renner, Earl, and Hull, disagrees with an earlier Third District panel composed of Justices Hoch, Robie, and Murray. The issue is whether an automobile manufacturer can rely on an […]

Nonsignatories: Second Dist., Div. 7 Holds Ford Motor Company Cannot Compel Arbitration Under Dealership Contract

Second District, Div. 7 Sides With Second Dist., Div. 8, Rejects Reasoning In Third District Case.         Rejecting equitable estoppel and third-party beneficiary theories, the Court of Appeal holds that Ford Motor Company cannot piggyback on to the arbitration provision in a dealership contract, and thus Ford is unable to compel arbitration with the buyer […]

Nonsignatories, Agents: Absence Of Ostensible Or Actual Authority Means Arbitration Agreement Is Unenforceabler

Keep In Mind That Authority Must Be Created By The Principal, Not The Agent.         Kinder v. Capistrano Beach Care Center, LLC, B316937 (2/7  5/18/13) (Escalante, Perluss, Feuer) is a lawsuit brought by a resident of a residential skilled nursing facility who broke her hip in a fall and sued. The nursing facility tried, unsuccessfully, […]

Nonsignatories, Automobiles: Ford Motor Company Could Not Rely On Dealership Agreements To Compel Arbitration With Auto Buyers

Order Denying Ford Motor Company's Motion To Compel Arbitration Is Affirmed.         In the Ford Motor Warranty Cases, No. B312261 (2/2  4/4/23) (Grimes, Stratton, Viramontes), FMC  sought to compel arbitration with plaintiffs who purchased automobiles and complained about manufacturing defects. However, FMC's argument relied on dealership contracts with arbitration clauses to which FMC was not […]

Non-Signatories’ Efforts To Compel Arbitration Based On Equitable Estoppel, Agency, and Third-Party Bene Theories All Failed

The Trial Judge Said He Had An Issue Of First Impression.         Jessica Hernandez sued Meridian Management Services, LLC and other entities for employment violations. The defendants sought to piggyback on to an arbitration agreement that Ms. Hernandez had entered into with her employer Intelex in order to compel her to arbitrate. Her lawyer, however, […]

Ninth Circuit Holds Inmate Receiving Debit Card For Confiscated Cash Did Not Consent To Debit Card Agreement To Arbitrate

Once You Know The Facts, Your Going To Know How This Case Turns Out . . .         Plaintiffs in Reichert v. Rapid Investments, Inc., 21-35530 (9th Cir.  12/30/22) (Berzon, Christen, Block) (per curiam) were inmates discharged from Kitsap County Jail and given a debit card for cash confiscated by the jail earlier upon their […]

Arbitration, Equitable Estoppel: Non-Signatory Plaintiffs Are Not Required By Equitable Estoppel To Arbitrate

First District Division 1 Explains What Will And What Will Not Result In Equitable Estoppel Requiring Non-Signatory To Arbitrate.         After plaintiffs in coordinated cases hired the Fertility Center (Pacific) to provide fertility-related services, a tank used by Pacific to freeze eggs failed. The tank was manufactured by Chart, Inc., (Chart), and sold to Pacific […]