Can a third party beneficiary of an arbitration agreement enforce the arbitration agreement against a plaintiff?

California, United States of America


The following excerpt is from Reidy v. Bonn, A145092 (Cal. App. 2018):

"The general rule is that only a party to an arbitration agreement may enforce it." (Ronay Family Limited Partnership v. Tweed (2013) 216 Cal.App.4th 830, 837 (Ronay).) However, "the law recognizes exceptions to the general rule and allows a nonparty to enforce an arbitration agreement provided the nonparty has ' "a sufficient 'identity of interest' " ' with a party to the agreement. [Citations.] In particular, an agent may enforce an arbitration agreement to which its principal is a party. [Citations.] Also, a third party beneficiary of an arbitration agreement may enforce it." (Id. at p. 838.) "Ultimately, 'the foundation of any right the third person may have is the promisor's contract.' " (Id. at p. 841.) Where the facts are not disputed, the question of whether a nonparty has the right to enforce an arbitration agreement against a plaintiff is a question of law, which we review de novo. (Id. at p. 837.)

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