Equitable Estoppel SOMETIMES Allows a Non-Signatory the Right to Compel Arbitration

“Where a contract subjects to arbitration claims between certain enumerated parties, that limiting language matters. Under appropriate circumstances, a non-signatory might invoke equitable estoppel to access an arbitration clause, but not to excavate it and fill it with new terms.” Florida Roads Trucking, LLC v. Zion Jacksonville, LLC, 49 Fla.L.Weekly D819a (Fla. 5th DCA 2024). Arbitration is a creature of contract. In Florida Roads Trucking, a non-signatory to a contract tried to compel arbitration of a dispute arguing that the arbitration provision in the plaintiff’s contract with another party should apply. This argument is based on a theory of equitable estoppel: Florida and federal...

09 January

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In Ruling on Motion to Compel Arbitration, Trial Court Must Determine whether Parties Bound by Arbitration Provision

Posted by David Adelstein

in Trial Perspectives

Arbitration is a creature of contract. This means if you want to arbitrate, instead of litigate, your dispute, you need to include an arbitration provision in your contract. However, this does not mean that parties do not try to avoid arbitration, albeit there being an arbitration provision in the contract, by filing a lawsuit. This leads to parties moving to compel arbitration and, upon the trial court’s ruling, a right to appeal. A party may feel the nature of the dispute will play out better for them in arbitration versus litigation, or there are other important strategic reasons to arbitrate...

04 April

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Arbitrability of a Dispute – Does a Judge or Arbitrator Decide?

Posted by David Adelstein

in Trial Perspectives

If you are involved in a dispute, the initial sentiment is to file a lawsuit and let a judge or jury decide the merits if it is not resolved in the interim. Another way to resolve a dispute is through binding arbitration. Frankly, with the uncertainty surrounding the judicial system right now, arbitration is not a bad way to go and likely the more efficient way to go, irrespective of the added administrative costs. The key with arbitration is that it is a creature of contract. This means there needs to be an arbitration provision in an agreement for the...

23 June

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Equitable Estoppel Circumstances to Allow Non-Signatory to Compel Arbitration

Posted by David Adelstein

in Appeal, Trial Perspectives

Arbitration is a creature of contract, meaning if you want your disputes to be resolved by arbitration through an arbitrator (as opposed to litigation with a judge and/or jury), you need to include an arbitration provision in your contract. A trial court granting or denying a party’s motion to compel arbitration is a non-final order that is immediately appealable. See Fla.R.App.P. 9.130(a)(3)(C)(iv). There are times that a non-signatory to a contract with an arbitration provision wants to compel arbitration. For example, a signatory to a contract (with an arbitration provision) files suit against a non-party and the non-party moves to compel...