TX STATETexas Supreme Court
2005

In Re Kellogg Brown & Root, Inc.

166 S.W.3d 732Texas Supreme Court • Decided 2005Enforced
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HOLDING

KBR, a second-tier subcontractor, was not a signatory to a contract containing an arbitration clause between MacGregor and Unidynamics. When disputes arose, MacGregor tried to force KBR into arbitration even though KBR never agreed to it. The Texas Supreme Court ruled that KBR cannot be forced to arbitrate claims just because it's part of the subcontracting chain. This protects subcontractors from being dragged into arbitration proceedings they didn't sign up for.

KEY FINDINGS

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Non-signatories to arbitration clauses cannot be forced to arbitrate unless they explicitly agreed to be bound by the clause

FULL COURT OPINION