Originally from Journal of American Arbitration (JAA)

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I. INTRODUCTION 

II. BACKGROUND PRINCIPLES 

A. The Federal Policy Favoring Arbitration of Disputes 

B. What Is Arbitrable? 

C. Who Is Bound?  The Nonsignatory Issue 

III. NONSIGNATORY RIGHTS:  COMPELLING SIGNATORIES TO ARBITRATE 

A. The Fifth Circuit’s Equitable Estoppel Ruling in Grigson v. Creative Artists Agency, L.L.C. 

1. The Facts 

2. The Arguments 

B. The Fifth Circuit After Grigson:  “Intertwined Claims” Based Estoppel? 

1. Hill v. G.E. Power Systems, Inc. 

2. James H. Westmoreland v. Roland J. Sadoux et al. 

C. The United States District Courts Respond 

1. Bellizan v. Easy Money of Louisiana 

2. Vigil v. Sears National Bank 

D. Implications for Fifth Circuit Practitioners 

IV. BEYOND THE INTUITIVE:  THEORIES FOR ENFORCING ARBITRATION AGREEMENTS AGAINST NONSIGNATORIES 

A. Alter Ego/Veil Piercing 

1. Louisiana State Cases 

2. Federal Application of Alter Ego/Piercing the Corporate Veil Doctrine 

B. Incorporation by Written Reference 

1. Louisiana State Cases 

2. Federal District Court Cases 

C. Assumption by Conduct 

D. Equitable Estoppel 

1. Louisiana Cases 

2. Federal Cases:  “Direct Benefit” Estoppel 

3. Federal Cases:  “Intertwined Claims” Estoppel 

E. Agency 

1. State Court Decisions 

2. Federal Court Cases 

F. Special Relationships 

G. Successors in Interest 

1. Louisiana Cases 

2. Federal Cases 

H. Third-Party Beneficiary 

1. Louisiana Cases 

2. A Texas State Case on Third-Party Beneficiary 

3. The Federal Cases 

I. Spousal “Special Relationship” 

1. Louisiana Cases 

V. WHAT LAW APPLIES:  THE FAA OR STATE ARBITRATION LAW? 

A. The Commerce Power 

B. State Court Application of the FAA 

VI. RECOMMENDATIONS AND PRACTICAL SUGGESTIONS 

A. Drafting Arbitration Agreements 

B. Litigation Involving Parties Who Signed an Arbitration Agreement 

VII. CONCLUSION