Court of Appeal Delves Further Into Whether Alleged Agency Relationship Relates to Activities Governed By The Arbitration Clause
The underlying dispute among different YMCA organizations, concerned the right to use camp grounds in the Sierra. Plaintiff Central Valley Young Man’s Christian Association, Inc. ran into financial difficulties, as a result of which the national YMCA dechartered plaintiff, and The Sequoia Lake Conference of Young Men’s Christian Associations removed plaintiff from its membership – then end result being that plaintiff’s members could not use the Sierra campgrounds. Plaintiff sued seeking reinstatement in Sequoia, and various other remedies. Sequoia moved to compel arbitration, but its petition was denied by the trial court. Central Valley Young Man’s Christian Association, Inc. v. The Sequoia Lake Conference of Young Men’s Christian’s Associations, Case No. F061635 (5th Dist. May 15, 2012) (Hill, P.J., author) (unpublished). Accordingly, Sequoia appealed.
Though a nonsignatory to any arbitration provision, Sequoia sought to take advantage of an arbitration provision in the Policies and Procedures Manual of the National Committee on Membership Standards (NCMS) of the national YMCA organization, which they asserted was binding on all chartered YMCAs. One of the ways in which a nonsignatory can gain a right to appeal is if the nonsignatory is an agent of a party to an arbitration agreement that governs the dispute. Sequoia sought to take advantage of the application of that rule to the dispute.
No go, said the Court of Appeal. Though the plaintiff’s complaint did in fact plead agency relationships, the allegations did not establish that the agency relationship related closely enough to the purported arbitration provision and the dispute:
“Sequoia is not alleged to be an agent of GSYMCA and Kings YMCA in any activities or relationship governed by the NCMS policies and procedures manual. Thus, Sequoia has not alleged or demonstrated that it was an agent of GSYMCA or Kings YMCA, or both, in connection with a dispute governed by the arbitration clause found in the NCMS policies and procedures manual.”
Result: affirmance. Sequoia failed to establish that it was a party entitled to invoke the arbitration provision, or that the dispute fell within the scope of the arbitration provision.
1917 – 1918. Library of Congress.
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