Lorber Industries of California, a Corporation v. Los Angeles Printworks Corporation, a Corporation, and Mark Fabrics, a Corporation
Opinion
Opinion
Boochever, J.
OVERVIEW
Lorber Industries of California (Lorber), a fabric manufacturer and printer, entered into sales contracts with defendant Timely Trends, a clothing manufacturer. These sales contracts contained mandatory arbitration clauses to resolve disputes arising out of the contracts. After a dispute with Lorber, Timely Trends entered into an agreement with defendant Mark Fabrics, a fabric printer, to copy two of Lorber’s fabric designs and sell the fabric to Timely Trends. Lorber brought two copyright infringement suits against a group of defendants all involved in the fabric business. Timely Trends and Mark Fabrics brought motions to compel arbitration, which were denied. Only Mark Fabrics appeals. Because Mark Fabrics was not a party to the contracts between Lorber and Timely Trends, nor an agent or third party beneficiary, it has no standing to compel arbitration. We therefore affirm the district court’s denial of the motion to compel arbitration.
Standard of Review
Denial of a motion to compel arbitration is subject to de novo review. See Alascom, Inc. v. ITT North Electric Co., 727 F.2d 1419, 1422 (9th Cir.1984).