Nguyen

Defendants Larry Hung Tran and TransCiti Mortgage & Realty (cooperating brokers) cooperated in a real estate transaction as the brokers for the buyers, plaintiffs Thap-Nhut Van Nguyen and Cathy Nguyen (buyers). They appeal from an order denying their petition to compel buyers and the listing brokers, defendants Gary Lee and High Ten Partners, Inc. (listing brokers), to arbitrate buyers’ claims, relying on an arbitration clause in the purchase agreement to which buyers and sellers, but not cooperating brokers or listing brokers, were parties. We conclude cooperating brokers, as agents of one of the parties to the agreement containing the arbitration clause, may compel their principal to arbitrate but they may not compel arbitration against listing brokers, who did not sign the agreement and had no preexisting confidential or contractual relationship with cooperating brokers. The order denying the petition to compel arbitration is reversed with respect to buyers. In all other respects, the order is affirmed.

FACTUAL AND PROCEDURAL BACKGROUND

In August 2003, buyers purchased real property from Chi Shu Yeh and Homg Tao Yeh (sellers). Several years later, buyers sued sellers…