Recently, an appellate court issued a written opinion in a California car accident case dealing with the issue of whether an arbitration agreement signed by the plaintiff’s employer was enforceable against the plaintiff. Ultimately, the court concluded that since the plaintiff was not a signatory to the agreement, and the defendant could show no other compelling reason to enforce the agreement, the arbitration agreement was not enforceable against the plaintiff.
The Facts of the Case
The plaintiff was delivering chairs for his employer in a rented truck. The defendant was the company that rented the truck to the plaintiff’s employer. Prior to renting the truck, the plaintiff’s employer signed an agreement to arbitrate any claims that arose through the use of the rented truck. The plaintiff did not sign the agreement.
As the plaintiff was delivering the chairs, a tire on the truck blew out. The truck spun out of control, and the plaintiff was injured. The plaintiff filed a personal injury lawsuit against the rental company, claiming that the company was negligent in maintaining the truck. In response, the rental company claimed that the plaintiff’s case was not properly before the court because it should have been submitted to an arbitration panel pursuant to the agreement between the rental company and the plaintiff’s employer.