Rowe

Rowe v. Exline

Good Law
153 Cal. App. 4th 1276·2007 Cal. App. LEXIS 1270·63 Cal. Rptr. 3d 787
Court of Appeal of CaliforniaJuly 31, 2007A116463California5,505 words

Opinion

Opinion

Needham, J.

Louis Exline, John Trahan, and Initiatek, Inc., appeal from an order denying their motion to compel arbitration under a contractual provision for binding arbitration. Appellants contend that the trial court erred in deciding that individual defendants, who were not signatories to a contract containing an arbitration provision but were sued as alter egos of a corporate defendant who was a signatory, may not compel another signatory party to arbitrate the controversies raised in the complaint. We agree with appellants and reverse the order.

I. FACTS AND PROCEDURAL HISTORY

Respondent Philip Rowe (Rowe) filed a verified complaint on March 21, 2006, asserting causes of action in his individual capacity and in a derivative capacity in the name of Initiatek, Inc. (Initiatek), against appellants Louis Exline (Exline), John Trahan (Trahan) and Initiatek.

A. Rowe’s Complaint and the Subject Contract

Rowe’s complaint alleged the following. Initiatek was a corporation existing from October 9, 2001, until August 12, 2004. Rowe was a founder, chief executive officer, and director of Initiatek from October 9, 2001, until July 17, 2003. Exline and Trahan were founders, shareholders,…

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