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Contract Arbitration Clause

By: Derek Hawkins//January 31, 2018//

Contract Arbitration Clause

By: Derek Hawkins//January 31, 2018//

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7th Circuit Court of Appeals

Case Name: Matthew Warciak v. Subway Restaurants, Inc.

Case No.: 17-1956

Officials: KANNE and SYKES, Circuit Judges, and DARROW, District Judge

Focus: Contract Arbitration Clause

Should courts apply federal or state law to decide whether a contract’s arbitration clause binds a non-signatory? In Scheurer v. Fromm Family Foods LLC, we held that courts should apply state law. 863 F.3d 748, 750 (7th Cir. 2017). We reiterate that holding here. Subway sought to enforce against Warciak an arbitration agreement that neither party had signed. Because Illinois promissory estoppel does not bind Warciak to the arbitration agreements between T-Mobile and his mother, we REVERSE the district court’s order dismissing Warciak’s suit and compelling arbitration and REMAND for further proceedings.

Reversed and Remanded

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Attorney Derek A. Hawkins is the managing partner at Hawkins Law Offices LLC, where he heads up the firm’s startup law practice. He specializes in business formation, corporate governance, intellectual property protection, private equity and venture capital funding and mergers & acquisitions. Check out the website at www.hawkins-lawoffices.com or contact them at 262-737-8825.

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