50% Company Owner Subject To Company’s Arbitration Agreement

The U.S. District Court in Maryland has held that a 50% shareholder of a company that provided pickup and delivery services to Fed Ex is subject to the arbitration provision that the company executed with Fed Ex. In Sui v. FedEx Ground Package System, Inc., the court found determinative that the plaintiff’s claims were based on the company’s agreement with FedEx. As the court explained, “[t]he pleadings indicate that this is a breach of contract action based on the ISP agreement. Therefore, the court finds that Sui is equitably estopped to avoid the arbitration clause because his claims are based on the ISP agreement.”

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