Effort To Compel Arbitration Failed Because Trump And Company Were Nonsignatories Who Distanced Themselves From Contract.
"A full-sized figure of then-President Donald Trump inside the doorway of an abandoned building in Marble Hill, the surviving name of what were the neighboring rural towns of Lutesville and Marble Hill in Bollinger County, Missouri." Carol Highsmith, photographer. 11/20/20. Library of Congress.
While we generally limit our posts to California, Ninth Circuit, and SCOTUS cases, we sometimes stray when a celebrity is involved. In Doe v. The Trump Corporation, Donald J. Trump, Donald J. Trump Jr., Eric Trump, Ivanka Trump, Docket Nos. 20-1228-cv/20-1278-cv (2d Cir. 7/28/21) (Sack, Chin, and Lohier), the celebrity was, well, you know.
In a Politico article, Josh Gerstein writes, "A federal appeals court has rejected an attempt by former President Donald Trump and three of his children to force arbitration in a class-action lawsuit accusing him of fraud during the decade he spent as a pitchman for ACN, a business services company featured on 'Celebrity Apprentice.'"
Plaintiffs alleged Trump and family members induced them with false information to enter into business relationships with non-party appellant, ACN, a "multi-level marketing" company that enlists individuals to work as "Independent Business Owners." While purportedly independent of ACN, Trump and family allegedly accepted large, secret payments to pitch ACN.
The effort to compel arbitration failed because defendants were not signatories to the arbitration agreement. Claiming they were independent of ACN, Trump and family were unable to benefit from ACN's arbitration clause.
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