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3rd DCASeptember 20, 2023Reversed and Remanded⭐ Notable

Factor Brokers, Inc. v. J&C Enterprises, Inc.

Case No. 3D2022-1029

Factor Brokers, a nonsignatory that purchased accounts receivable arising from an agreement containing an ICC arbitration clause, was ordered to arbitrate on the theory it was bound as an assignee. The Third DCA reversed because the parties submitted dueling affidavits about whether any assignment of the agreement (as opposed to the receivables) existed, and the trial court resolved the motion without an evidentiary hearing.

Key facts

  • Factor Brokers, a nonsignatory to an arbitration agreement, purchased accounts receivable from J&C Enterprises arising from a contract containing an ICC arbitration clause.
  • The trial court ordered Factor Brokers to arbitrate based on the theory that it was bound as an assignee of the underlying agreement.
  • +2 more key facts with a free trial

Why it matters

Useful for parties resisting arbitration as nonsignatories: it confirms that a delegation clause (including via incorporated ICC rules) cannot strip the court of authority to decide whether any agreement exists between… — full analysis with a trial

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