Earlier this month, a state appellate court issued a written opinion in a California work injury case involving the enforceability of an arbitration agreement that was signed by the plaintiff’s employer and the defendant, but not the plaintiff. Ultimately, the court concluded that while the accident would otherwise have fallen under the arbitration agreement, since the plaintiff was not a party to the contract, he could not be forced to submit his claim to arbitration and was entitled to use the court system.
The plaintiff was injured in a car accident when a tire on the U-Haul truck that his employer had rented blew out. The employer had rented the truck and instructed the plaintiff to deliver massage chairs to the state fairgrounds. This was the first time the plaintiff, who was normally a warehouse worker, was asked to deliver merchandise.
Prior to taking possession of the truck, the plaintiff’s employer signed the U-Haul rental agreement, which contained an agreement to arbitrate any claims arising from the use of the truck. The rental agreement specified that it applied to “agents and employees” of the party signing the contract.