Auvil v. Johnson

Summary

The Supreme Court of Alabama affirmed the denial of Jimmy D. Auvil's motion to compel arbitration of Amy M. Johnson's claims arising from the sale of a variable universal life insurance policy. The court held that Johnson was not bound by the arbitration agreement because she did not sign it and the insurance application did not incorporate it by reference. The court also held that Auvil, a nonsignatory agent, lacked standing to enforce the agreement under the circumstances.

Holdings

1. Amy Johnson was not bound by the arbitration agreement because she did not sign the document containing it, and the insurance application did not incorporate that document by reference.
2. Auvil lacked standing to enforce the arbitration agreement because he was neither a party nor a beneficiary of the agreement, and the agreement did not include him as an agent or other beneficiary.

Questions Presented

1. Whether Amy Johnson was bound by an arbitration agreement that she did not sign and that was contained in a separate document not incorporated into the insurance application.
2. Whether Jimmy Auvil, a nonsignatory agent, had standing to enforce the arbitration agreement against Johnson when the agreement did not include him as a party or beneficiary and the signatory principal, ANIC, was not proceeding to arbitration.

Disposition

affirmed