A cautionary note on moving to compel arbitration

March 29, 2020

An unsuccessful motion to compel arbitration did not fare better on appeal when:

  • The question of who decides arbitrability was not raised in the motion (and was thus forfeited for appeal purposes);
  • Equitable estoppel was briefed in the motion with reference to authority about “concerted misconduct estoppel” – theory rejected by the Texas Supreme Court;
  • Direct benefits estoppel was unavailable because the plaintiffs sued under federal employment law, not their state-law employment agreements;
  • Third party beneficiary status was not available because the movant was not named in the agreement, while the entity that actually had hired the plaintiffs was.

Hiser v. NZone Guidance LLC, No. 19-50353 (March 24, 2020) (unpublished).

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