| 1. Multiparty disputes have long been a source of |
controversy in the enforcement of agreements to arbitrate. |
When conflict erupts in complex transactions involving |
multiple contracts, it is rare for all parties to be |
signatories to a single arbitration agreement. In such cases, |
some parties may be bound to arbitrate while others are not; |
in other situations, there may be multiple arbitration |
agreements. Such realities raise the possibility that common |
issues of law or fact will be resolved in multiple fora, |
enhancing the overall expense of conflict resolution and |
leading to potentially inconsistent results. See III Macneil |
Treatise § 33.3.2. Such scenarios are particularly common in |
construction, insurance, maritime and sales transactions, but |
are not limited to those settings. See Thomas J. Stipanowich, |
Arbitration and the Multiparty Dispute: The Search for |
Workable Solutions, 72 Iowa L. Rev. 473, 481-82 (1987). |