NEWS & EVENTS
Lolli and Geary Achieve Appellate Court Victory
Don Lolli and Matt Geary received an Opinion from the Missouri Court of Appeals reversing the Trial Court’s denial of a Motion to Compel Arbitration and finding in their client’s favor for arbitration under the Federal Arbitration Act.
The issue was whether an arbitration provision in a commercial contract could be enforced by an individual defendant who did not sign the contract in his personal capacity, but who had signed the contract as the Managing Member of a limited liability company. The limited liability company was a party to the contract, and initially a defendant, but had been dismissed earlier without prejudice by Plaintiffs. The Appellate Court held that the individual defendant could enforce the arbitration provision, finding: (a) there was a disclosed agency relationship between the individual defendant and the limited liability company; (b) the Plaintiffs’/Appellees’ claims arose out of the agent’s conduct while acting as a member of the limited liability company; (c) the Plaintiffs/Appellees treated the individual defendant and the limited liability company collectively in the lawsuit; and (d) Plaintiff’s/Appellees’ damage claims against the individual defendant arose from the contract. Plaintffs/Appellees filed an Application for Transfer to the Missouri Supreme Court, which was denied without opinion.