Binding Non-Signatories To An Arbitration Through The Group Of Companies' Doctrine

It has been well established that consent from parties is a prerequisite to an arbitration.This characteristic of an arbitration ensures that it is only the parties to an arbitration agreement that would be the parties between who arbitration shall commence against. However, over time we have seen different doctrines or legal theories developed such as the group of companies'doctrine, the concept of agency, the reliance theory¹, that have been used to make a non-signatory a party to an arbitration.

What is the Group of Companies' Doctrine?

Each company being a separate legal entity has separate legal rights and liabilities. Even if a company is an affiliate, it still retains its characteristic of being a separate legal entity. Therefore, an agreement made by one company of the same group cannot be binding on another company that is an affiliate of the parent concern. However, through the group of companies' doctrine  an arbitration agreement entered into by a