Hawaii District Court Declines to Enforce Arbitration Clause Against Non-Party Debt Collector [telecom]

open original image

Despite Agreement, No Arbitration! Hawaii District Court Declines to Enforce Arbitration Clause Against Non-Party Debt Collector

By Brent Owen

For nearly a century, federal law has favored arbitration where the parties agree to it. This rule typically extends to a "nonsignatory" who does not sign the contract but who seeks the benefit of the contractual bargain. However, a recent decision from the United States District Court for the District of Hawaii continues a troubling trend excluding certain TCPA cases from that general rule.