Nonsignatory May Enforce Arbitration Clause, N.J. Court Rules

TRENTON, N.J. - A nonsignatory may enforce an arbitration clause in a contract signed by its subsidiary because the two companies were substantially aligned in connection with the allegations against them, a New Jersey appellate court has ruled. EPIX Holdings Corp. v. Marsh & McLennan Companies Inc., et al., No. A-3059-08T3 (N.J. Super., App. Div.).

On Nov. 17, the New Jersey Superior Court, Appellate Division, ruled that bid-rigging and other conspiracy claims brought by EPIX Holdings Corp. against American International Group and its subsidiary, National Union Fire Insurance Co., are subject to arbitration.

EPIX is a professional employer organization that …