“In Setty, Ninth Circuit Signals Shift in Arbitration Landscape for Non-Signatories”

Lauren Evans of McDermott Will & Emery has authored this article, available in The National Law Review, discussing the Ninth Circuit’s decision in Setty v. Shrinivas Sugandhalaya LLP, Case No. 18-35573 (9th Cir. Jan. 20, 2021), which included both choice of law and equitable estoppel analyses. Attorney Evans posits that “[t]he Setty decision appears to demonstrate a shift in the US arbitration landscape, and parties may begin to see an increase in the use of equitable estoppel theories by non-signatories. Practitioners should keep in mind that this theory may be used by non-signatories affirmatively to attempt to compel arbitration, but it may open the door to enforcement of an obligation to arbitrate against non-signatories as well.”