Harley Dealer Can't Ride Free (With or Without Being Hassled by the Man) on Bank's Arb Clause

Fuentes v. TMCSF, Inc., No. E066242 (Aug. 23, 2018)

Plaintiff bought a Harley. He brought a CLRA/UCL/FAL class action against the Dealer for various misrepresentations in its sales practices. His sales contract does not have an arb clause. But his finance agreement does. Although Plaintiff didn’t sue the bank, Dealer tries to enforce the arbitration rights in that agreement anyway. But none of the theories that permit a non-party to compel arbitration apply. The Court here goes through incorporation, agency, third party beneficiary, and estoppel. But there’s also alter ego, which apparently is not an issue here. So the trial court correctly denied Dealer’s motion to compel arbitration.

Affirmed.

Accord The Wild Angels.