Non-Signatory Not Required to Arbitrate Trade Secret Claims, 9th Cir. Affirms

SAN FRANCISCO — A federal appellate panel has ruled that a non-signatory to an operating agreement containing an arbitration clause is not compelled to arbitrate its trade secret and unfair competition claims because they are not “dependent, on or inextricably intertwined” with the underlying contractual obligations of the agreement.

On March 18, the 9th Circuit U.S. Court of Appeals panel further ruled that because the plaintiff did not receive a “direct benefit” from the agreement, it is not required to arbitrate.

Thrasio LLC, an Amazon ecommerce company, sued Boosted Commerce Inc., Boosted Ecommerce Inc., and their co-founder Charles Chanaratsopon in …