Arbitration: Defendant That Did Not Sign an Arbitration Agreement Can Seek to Compel Arbitration Against a Plaintiff that Did Sign the Agreement

The Second District of the Court of Appeal (Los Angeles) issued JSM Tuscany, LLC v. Superior Court (NMS Properties, Inc.) (2011) 193 Cal.App.4th 1222,  on March 29, 2011, which held, in a matter of first impression, that defendants who are not signatories to the contracts containing an arbitration clause may enforce the arbitration clause contained in the contracts against signatory party plaintiffs who have filed suit on claims arising under the agreements; nonsignatory plaintiffs who have joined in the action to assert claims based upon or arising out of the alleged breach of the contracts containing the arbitration clauses may also be compelled to arbitrate, even by defendants who are not themselves signatory parties to the contracts containing the arbitration clauses.  Trial court’s decision denying motion to compel arbitration reversed and remanded.