Non-Signatories Can't Rely On Equitable Estoppel To Compel Arbitration In Florida

On January 18, 2017, the United States Court of Appeals for the Eleventh Circuit held that sisters Kim, Kourtney and Khloé Kardashian ("Kardashians") could not rely on the doctrine of equitable estoppel to force Kroma Makeup, EU ("Kroma EU") to arbitrate its cosmetics trademark infringement claims. In a straightforward opinion, the Eleventh Circuit found that it would be inequitable to compel a party to arbitrate its claims against a non-party to the arbitration agreement when the agreement specifically limited arbitration to disputes arising between the parties.

Background

By Lee Tillett, Inc. ("Tillett") developed and trademarked the Kroma cosmetic line. In 2012, Tillett entered into an agreement with Kroma EU, which gave Kroma EU the right to use the Kroma trademark. The agreement contained an arbitration clause that stated, "[T]he Parties agree that disputes arising between them ... should be considered [in] independent arbitration in the State of Florida,