FOURTH CIRCUIT AFFIRMS ORDER DISMISSING CASE TO PERMIT ARBITRATION AGAINST NON-SIGNATORY TO ARBITRATION AGREEMENT

An arbitration agreement was contained in a retail installment contract. The Fourth Circuit affirmed the lower court’s dismissal of the case pending arbitration against a non-signatory to the arbitration agreement on two grounds: (1) the dispute, which involved the parties’ obligations under the retail installment contract, had a “significant relationship” to the contract; and (2) the plaintiff’s claims relied on the contract and the plaintiff was therefore “equitably estopped from disclaiming the contract’s arbitration provision.” Lomax v. Weinstock, Friedman & Friedman, P.A., No. 14-1130 (4th Cir. Sept. 4, 2014).

This post written by Michael Wolgin.

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