Jackson v. Stevenson

Summary

The court held that a nonsignatory entity could not be compelled to arbitrate under equitable estoppel because it did not sign, invoke, or directly benefit from the operating agreements containing the arbitration provisions. The trial court should have independently decided whether the nonsignatory was bound, rather than deferring to the arbitrator, and the arbitrator exceeded his powers by compelling arbitration. The court reversed the Court of Appeals in part, vacated the award against the nonsignatory, and remanded for consideration of unresolved issues concerning the award against the signatory entities.