Degraw Construction Group, Inc. v. McGowan Builders, Inc., 152 A.D.3d 567

Degraw Construction Group (plaintiff) sued McGowan Builders and several individual defendants to foreclose a mechanic's lien and asserted tort claims (conversion, unfair competition, tortious interference) against the individual defendants.
Plaintiff alleged it contracted with McGowan Builders to perform work and was not fully paid.
The subcontract between plaintiff and McGowan Builders contained a broad arbitration clause covering "all claims, disputes and other matters arising out of or relating to" the agreement.
The individual defendants (officers/employees of McGowan Builders) were not signatories to the subcontract.
McGowan Builders and the individual defendants moved to compel arbitration of the tort claims against the individuals; the trial court denied arbitration as to the individual defendants because they were nonsignatories.
The Appellate Division reversed, finding the individual defendants could enforce the arbitration clause because the alleged misconduct arose from their roles as corporate agents.

Issue	Plaintiff's Argument	Defendant's Argument	Held
Can nonsignatory individual officers/employees compel arbitration of tort claims arising from conduct connected to a contract with an arbitration clause?	Plaintiff argued the individuals are nonsignatories and therefore cannot enforce the arbitration clause.	Defendants argued the arbitration clause is broad and the tort claims arise from their roles as corporate agents, so they can enforce it.	The court held nonsignatory corporate officers/employees may enforce the arbitration clause where claims stem from actions taken on behalf of the corporation and relate to the contract.

Matter of Belzberg v. Verus Invs. Holdings Inc., 21 N.Y.3d 626 (Court of Appeals) (arbitration is contractual; parties must agree to arbitrate)
Hirschfeld Prods. v. Mirvish, 88 N.Y.2d 1054 (Court of Appeals) (corporate officers/employees may enforce corporate arbitration agreements to prevent circumvention and effectuate signatories' intent)
Matter of Groval Knitted Fabrics, 31 N.Y.2d 796 (Court of Appeals) (recognizing enforcement of arbitration rights by corporate agents in similar circumstances)
First Options of Chicago, Inc. v. Kaplan, 514 U.S. 938 (U.S. Supreme Court) (apply ordinary state-law contract principles to determine arbitrability)
Oxbow Calcining U.S.A., Inc. v. American Indus. Partners, 96 A.D.3d 646 (App. Div.) (general rule that only parties to an arbitration agreement are bound, but exceptions exist)
Highland HC, LLC v. Scott, 113 A.D.3d 590 (App. Div.) (upholding nonsignatory enforcement where claims arise from corporate role)