Category: Arbitration: Nonsignatories

Arbitration/Nonsignatories/Equitable Estoppel: Ninth Circuit Puts Brakes On Toyota’s Attempt To Compel Prius Plaintiffs To Arbitrate Their Claims

District Court Could Decide Whether Nonsignatory Could Compel Arbitration      Toyota has been enmeshed in arbitration concerning the ABS braking system of its 2010 Prius.  In Kramer v. Toyota Motor Corporation, et al., Case No. 12-55050 (9th Cir. January 1, 2013) (Quist, D. J., author 3-0) (published), owners of 2010 Priuses, parties to arbitration agreements […]

Arbitration/Section 1295/Section 1281.2: Fourth District, Division 2 Affirms Denial Of Petition To Arbitrate Wrongful Death Claim Against Senior Living Center Outside Context of CCP Section 1295

In Which We Inaugurate A New Side Bar Category:  Section 1295 (Medical Malpractice)          “The Patient.”  Frederic Dorr Steele, artist.  1901.  Library of Congress.     The plaintiff in the next case, Norma Daniels, is alive.  Her mother, Margaret Barcenas, is dead.  Ms. Daniels sued a residential care facility for the elderly (RCFE), its […]

Arbitration/Standard of Review/CCP 1281.2/Nonsignatories: Nonsignatories Created Possibility of Conflicting Rulings And Also There Was Evidence That Aged Plaintiff Never Agreed To Arbitrate

Standard of Review Was Crucial To Affirmance of Trial Court’s Order Denying Motion to Compel Arbitration      What a difference the standard of review can make.       Plaintiff Thiel, an investor, sued MKA Real Estate Qualified Fund I, LLC for investment mismanagement.  Several investment advisors, as well as real estate developers, were named as co-defendants.  […]

Arbitration/Nonsignatories: Fourth District, Division 1 Affirms Trial Court’s Order Denying Petition to Compel Arbitration With Nonsignatory

October 23, 2012 · Arbitration: Nonsignatories

Parties Moving to Compel Arbitration Were Unable to Take Advantage of Nonsignatory’s Admissions Where Moving Parties Denied Existence of Agreement Between Themselves and Nonsignatory      Our next case is an odd one in which each of the adversaries took seemingly inconsistent positions.  PMCI and Gregory, a contractor and its principal, were moving parties seeking to […]

Arbitration/Nonsignatories/Scope: Plaintiff’s Mere Allegation of Agency Relationships Is Not Necessarily Enough to Enable Nonsignatory to Take Advantage of Arbitration Provision

  Court of Appeal Delves Further Into Whether Alleged Agency Relationship Relates to Activities Governed By The Arbitration Clause      The underlying dispute among different YMCA organizations, concerned the right to use camp grounds in the Sierra. Plaintiff Central Valley Young Man’s Christian Association, Inc. ran into financial difficulties, as a result of which the […]

Arbitration/Nonsignatories/Enforcement: Second District, Division 7 Affirms Decision That Plaintiff Was Not Bound By Arbitration Provision In “Close Case”

  Outcome Depended On Capacity In Which Signatory Signed      The trial court determined that Plaintiff Allen Othman was not a party to a contract containing an arbitration provision in an agreement, and therefore was not bound to arbitrate his claims against Zions First National Bank. Mr. Othman had tried to purchase a property through […]

Arbitration/Nonsignatories/Third Party Beneficiaries: Financial Advisor of Corporation Can’t Compel Arbitration With Corporation’s Creditors on Third-Party Beneficiary Theory

  Corporate Creditors Would Have Benefited Alright If Advisor Had Successfully Obtained Financing for Corporation — But Benefit Alone Does Not a Third-Party Beneficiary Make      One exception to the rule that a nonsignatory cannot be compelled to arbitrate a dispute is when the nonsignatory is a third-party beneficiary of the contract containing the arbitration […]

Arbitration/Nonsignatories: Second District, Division 5 Refuses to Enforce Arbitration Agreement Against Nonsignatory Broker

  Opinion Not For Publication Rejects Dictum In Published Opinion      Nonsignatories to arbitration agreements may find themselves bound to arbitrate if they are agents of a signatory party to the transaction. But that didn’t happen to the real estate brokers here. 3118, LLC v. CBD Investment, Inc., B234706 (2nd Dist. Div. 5 April 10, […]

Arbitration: Third District Rules That FAA Does Not Preempt California Arbitration Statute Allowing for Denial of Arbitration Where There Is Possibility of Conflicting Rulings

  Elder Abuse of Parent and Emotional Distress of Daughter Set Up Possibility of Conflicting Rulings      The trial court denied motions of operators of skilled care nursing facilities to compel arbitration of parent’s Elder Abuse claim that was subject to arbitration. Why? Because the daughter’s claim of emotional distress caused by her mother’s alleged […]

Arbitration/Nonsignatories/CCP 1281.2/Standard of Review: Fourth District, Division 1, Reverses Trial Court’s Order Denying Motion to Compel Arbitration of Customer/Investment Advisor Dispute

  Perennial Issue: Can Nonsignatories To Arbitration Agreement Compel Arbitration?      An investment advisor and related defendants petitioned to arbitrate claims brought by an investor’s successor in interest. The successor (John) alleged that the accounts of his deceased mother had been “churned” to improperly generate commissions. The trial court denied the petition brought by the […]