Dist. Ct. did not err in denying defendant’s motion to arbitrate parties’ dispute regarding defendant’s use of plaintiff’s software license used to provide estimates of costs to repair cars and trucks, where Dist. Ct. noted that defendant was not party to contract that contained said arbitration clause. Plaintiff alleged that: (1) employee of defendant falsely represented to plaintiff that he represented independent appraiser seeking plaintiff’s software license; (2) defendant’s employee agreed not to assign his rights to license to anyone else; and (3) defendant’s employee then gave software package to defendant. Ct. of Appeals found that defendant could not obtain any rights to subject contract, including arbitration clause, where it was not party to contract and was not otherwise third-party beneficiary, Moreover, instant contract demonstrated that identity of plaintiff’s trading partner was vital element of instant contract.
Federal 7th Circuit Court
Civil Court
Arbitration