A is for Arbitration: Can A Non-Signatory To A Contract Enforce An Arbitration Provision In That Contract?

A is for...Arbitration: Can A Non-Signatory To A Contract Enforce An Arbitration Provision In That Contract?

A corporate client is engaged in arbitration with a third party pursuant to an arbitration provision in the contract between the parties. An executive signed the contract "on behalf of" the company, but did not sign the contract individually. During the course of the matter, the third party brings claims in court against the executive in his individual capacity, and the executive wants to force those claims to arbitration. Can he?

The strongest argument to be made in favor of arbitration is that, at the time the activities at issue occurred, the executive was acting on behalf of, and as an agent for, the company. It is well-settled that agents are afforded "the benefits of arbitration agreements made by their principal." Arnold v. Arnold Corp. - Printed Commc'ns For Business, 920 F.2d 1269, 1282 (6th Cir. 1990). Therefore, as an agent of the company, the...