What is a non-signatory to an arbitration agreement?
A non-signatory to an arbitration agreement in Virginia is someone who is not a party to the arbitration agreement. This could be someone who was not consulted when the agreement was drafted, someone who was not involved in any way, or someone who was actively excluded from the agreement. A non-signatory may be a business or individual, and they may not even be aware that the arbitration agreement exists. The purpose of arbitration is for parties to resolve disputes outside of court. An arbitration agreement typically specifies the conditions that must be met in order for the dispute to be resolved (e.g. who is a party to the arbitration agreement, what rules must be followed, etc.). Non-signatories are not bound by the agreement and are not required to participate in the process. In Virginia, a non-signatory may be brought into an arbitration process through a process known as “equitable estoppel.” If the non-signatory is deemed to have sufficient connection to the dispute, then the court may order them to participate in the arbitration process. This allows the other party to gain the benefit of the arbitration agreement even though the non-signatory was not originally a party to it. In summary, a non-signatory to an arbitration agreement in Virginia is someone who is not a party to the agreement and is not required to participate in the arbitration process. However, a court may order a non-signatory to participate in the arbitration process through a process known as “equitable estoppel.”
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