What is a non-signatory to an arbitration agreement?
A non-signatory to an arbitration agreement is a party who was not a part of the original agreement. This can be either a person or an entity that was not a party to the agreement. Generally, a non-signatory does not have the same rights as a signatory to an arbitration agreement. In Georgia, the arbitration process is governed by the Georgia Arbitration Code. This code provides that a non-signatory to an arbitration agreement is not bound by the arbitration agreement. However, if the non-signatory shows a substantial involvement in the dispute, the Georgia arbitration code states that they can be bound by the arbitration agreement. When a non-signatory is bound to an arbitration agreement, they are bound to all of the same terms and conditions as the signatories. This includes the same duties and obligations such as the payment of arbitration fees. The arbitration process also applies to non-signatories as it does to signatories. Non-signatories also can be affected by the outcome of the arbitration. If a signatory is successful, the non-signatory may be responsible for certain duties or payments related to the outcome of the arbitration proceedings. Ultimately, arbitration is a legally binding dispute resolution process and it does not matter if the parties involved are signatories or non-signatories. All parties, including non-signatories, should be aware of the rights and responsibilities associated with the arbitration process.
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