Binding arbitration is familiar to parties who sign any contract containing an arbitration agreement. But when will courts allow a nonsignatory to compel a signatory to arbitrate under an arbitration agreement? When will courts allow a signatory to compel a nonsignatory to arbitrate under an arbitration agreement? What doctrines have the courts recognized as applying to nonsignatories and arbitration? This article will focus on these questions and offers an overview of possible routes to nonsignatory arbitration.
There are a variety of doctrines rooted in state law by which nonsignatories can compel a signatory to an arbitration agreement to arbitrate, or alternatively, be compelled to arbitrate with a signatory to an arbitration agreement. These include (1) incorporation by reference; (2) assignment, assumption, and waiver; (3) principles of agency; (4) third-party beneficiary status; (5) piercing the corporate veil and alter ego; and (6) equitable estoppel.
