Non-Signatory to an Arbitration Agreement

If you`ve ever been a party to a legal dispute, you may have heard the term “arbitration agreement” tossed around. An arbitration agreement is a contract between two parties that outlines how disputes will be resolved if they arise. Usually, this involves the appointment of a neutral third-party arbitrator who will make a binding decision on the matter.

However, what happens if someone who is not a party to the arbitration agreement becomes involved in the dispute? This is where the concept of a “non-signatory” comes in.

A non-signatory is someone who has not signed the arbitration agreement but has become involved in the dispute in some way. For example, a non-signatory may be a parent company of one of the parties to the agreement, a subsidiary of one of the parties, or a third-party contractor who has been hired to perform work related to the dispute.

When a non-signatory becomes involved in a dispute that is covered by an arbitration agreement, there are a number of legal issues that can arise. For example, the non-signatory may argue that they should not be bound by the agreement and should be allowed to pursue their rights in court instead.

If the non-signatory does not want to be bound by the arbitration agreement, they may argue that they never agreed to it in the first place. For example, if the parent company of one of the parties to the agreement was never involved in the negotiation or drafting of the agreement, they may argue that they cannot be bound by its terms.

There are also situations where the non-signatory may be able to enforce the arbitration agreement against the other parties. For example, if the non-signatory is a third-party contractor who has been hired to perform work related to the dispute, they may argue that they are covered by the arbitration agreement as a third-party beneficiary.

In any case, when a non-signatory becomes involved in a dispute that is covered by an arbitration agreement, it is important to seek the advice of an experienced attorney who can help navigate the complex legal issues that may arise. With the right legal representation, it is possible to effectively protect your rights and resolve any disputes that may arise.