Judge: Nathan R. Scott, Case: Torres v. Mercedes-Benz USA, Date: 2022-08-19 Tentative Ruling

Defendant Mercedes-Benz USA LLC’s motion to compel arbitration is denied.  (See Code Civ. Proc. § 1281.2.)

To be sure, defendant has shown plaintiff signed a written arbitration agreement.  (See Code Civ. Proc., § 1281.2; see also Rosenthal v. Great Western Fin. Securities Corp. (1996) 14 Cal.4th 394, 413; see also Ameripour decl. Ex. 2 at p. 4 of 10.)

But the arbitration agreement does not cover plaintiff’s claims against defendant.

The lease’s arbitration provision requires plaintiff to arbitrate claims and disputes “between you and us or any of our employees, agents, successors, or assigns.” 

The lease carefully defines “us” as “the Lessor and, after the lease is assigned, to Daimler Trust, or its successors and assigns.”  (Ameripour decl. Ex. 2 at p. 1 of 10.)

The lease does not define “us” to include defendant, the vehicle’s manufacturer.  Defendant has not shown it is the dealership’s employee, agent, successor, or assign.

Nor does the arbitration agreement expressly require plaintiff to arbitrate disputes arising out of “any such relationship with third parties who do not sign this contract.”  (Felisilda v. FCA US LLC (2020) 53 Cal.App.5th 486, 490.)  Felisilda italicized that provision and explained it would not “gloss[] over language in an arbitration clause that expressly includes third party nonsignatories.”  (Id. at p. 498.)

As the agreement uses express language when extending contract benefits to nonsignatories (as by defining “us” to include Daimler Trust) and omits language requiring arbitration of disputes involving “relationship[s] with third parties who do not sign this contract,” the court cannot conclude defendant is a third party beneficiary of the arbitration agreement or that plaintiff is equitably estopped from avoiding arbitration with defendant.  (See generally Ruderman v. Rolls Royce Motor Cars, LLC (2021) 511 F.Supp.3d 1055,1058-1060; Ngo v. BMW of North America, LLC  (2022) 23 F.4th 942, 946-950.)

Defendant shall give notice.