Gerig v. Kahn

Summary

The Ohio Supreme Court held that a signatory to a contract may enforce an arbitration provision against a nonsignatory seeking a declaration of the signatories’ rights and obligations under the contract. The court applied equitable estoppel because the nonsignatories’ claimed interests derived from the contract and they sought its interpretation. The court also held that a statutory exhaustion issue should be stayed pending arbitration because the arbitrator’s coverage determination could render that issue moot.

Holdings

1. A signatory to a contract may enforce an arbitration provision against a nonsignatory who seeks a declaration of the signatories' rights and obligations under the contract. Equitable estoppel prevents the nonsignatory from seeking a benefit or interpretation under the agreement while avoiding its arbitration obligation.
2. The issue whether St. Vincent's self-insurance constitutes 'other insurance' that must be exhausted under R.C. 3955.13(A) should be stayed pending the arbitrator's determination of coverage.

Questions Presented

1. Whether signatories to a contract may enforce the contract's arbitration provision against nonsignatories who seek a declaration of the signatories' rights and obligations under the contract.
2. Whether the statutory exhaustion issue concerning OIGA's obligation under R.C. 3955.13(A) should be stayed pending arbitration of the underlying coverage issue.

Disposition

affirmed