Everitt v. Paul Davis Restoration, Inc.

Dist. Ct. erred in granting plaintiff’s request to vacate arbitration award obtained through franchise agreement, even though plaintiff argued that she was not obligated to arbitrate dispute because she had not signed said agreement containing arbitration clause that her husband had signed. Record showed that plaintiff and her husband co-owned corporation that was formed to run franchise, and that plaintiff and her husband was required to seek defendant’s consent upon her acquisition of her ownership interest in corporation. Moreover, plaintiff was bound by franchise agreement, as well as arbitration clause contained therein, under direct benefits doctrine, where record showed that she, like her husband, had received direct benefits from franchise agreement in terms of trading upon name, goodwill, reputation and other benefits of said franchise. Ct. rejected Dist. Ct.’s observation that plaintiff was not bound by arbitration clause, since she had received only indirect benefits through her joint ownership of said corporation.