Can a non-signatory party to an arbitration agreement be bound to arbitrate?

California, United States of America


The following excerpt is from Jenks v. DLA Piper Rudnick Gray Cary U.S. LLP, 196 Cal.Rptr.3d 237, 243 Cal.App.4th 1 (Cal. App. 2015):

there are six theories by which a nonsignatory may be bound to arbitrate: (a) incorporation by reference; (b) assumption; (c) agency; (d) veil-piercing or alter ego; (e) estoppel; and (f) third-party beneficiary " (Suh v. Superior Court (2010) 181 Cal.App.4th 1504, 1513, 105 Cal.Rptr.3d 585.)5 "These exceptions to the general rule that one must be a party to an arbitration agreement to invoke it or be bound by it generally are based on the existence of a relationship between the nonsignatory and the signatory, such as principal and agent or employer and employee, where a sufficient "identity of interest" exists between them. " (DMS, supra, 205 Cal.App.4th at p. 1353, 140 Cal.Rptr.3d 896.)

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