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ARTICLE · 21 APRIL 2020

Second Circuit Overturns Arbitration Award Against Non-Signatory Parent Company

Cleary Gottlieb Steen & Hamilton LLP
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On April 2, 2020, the Second Circuit held that an arbitration award could not be enforced against a parent company that was not a signatory to a contract's arbitration agreement.

United StatesLitigation, Mediation & Arbitration

On April 2, 2020, the Second Circuit held that an arbitration award could not be enforced against a parent company that was not a signatory to a contract's arbitration agreement, even though the parent company was listed in the contract as a guarantor and was involved in the purchase of goods pursuant to the contract.

In so doing, the Court confirmed its commitment to a literal, textualist approach to contractual interpretation notwithstanding the commercial realities indicating that the parent company was involved in the parties' relationship and played a key role in the dispute from which the arbitration arose.

Judicial Authority to Determine Obligations of a Non-Signatory to an Arbitration Agreement

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