“Commercial Division Holds Nonsignatories Are Bound By Agreement’s Arbitration Clause”

In this article authored by Sonia Russo in JD Supra, she discusses a New York Supreme Court decision in 2004 Parker Family LP v. BDO USA LLP, in which she describes the issue thusly: “In bringing their motion to compel arbitration, defendants also relied on the Agreements, which contained an arbitration provision requiring any dispute ‘between the parties’ to be resolved in arbitration. Although plaintiffs weren’t parties to the Agreements, Defendants argued that because plaintiffs, as non-signatories to the Agreements, alleged third-party beneficiary status under the Agreements in plaintiffs’ third-party breach of contract claims, plaintiffs should also be bound by the arbitration provision in those Agreements.”

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