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- UNITED STATES 18 February 2021 Clean Pro
UNITED STATES 18 February 2021 Clean Pro
United States District Court, Eastern District of Louisiana, 18 February 2021, CIVIL ACTION NO. 20-1550 SECTION: "G"(1)
(Clean Pro Carpet & Upholstery Care, Inc., et al. v. Upper Pontalba of Old Metairie Condominium Association, Inc., et al.)
UNITED STATES 18 February 2021 Clean Pro
The Court granted the motion to compel arbitration in relation to a dispute concerning an insurance policy. It found that non-signatories to a contract could enforce the arbitration provision in the policy because traditional principles of state law allow a contract to be enforced by or against non-parties to the contract through several theories, including estoppel. Here, the claims arose out of and related directly to the insurance policy containing the arbitration provision, and the non-signatory defendant could enforce the arbitration provision against Clean Pro under the doctrine of estoppel.
The court discusses the meaning and effect of the referral of the resolution of disputes to arbitration, including: who can ask for referral and when, whether a party has waived its right to request arbitration, the defense that there was no contract at all; whether there was a condition precedent to the commencement of arbitration (e.g. mediation), stay of proceedings v. compelling arbitration, and national procedural specificities such as remand and removal (US), effect of class action. etc.
Multi-party disputes: The court discusses under which conditions non-signatories are covered by an arbitration agreement entered into by another party.