In Tennessee, a person can be compelled to arbitrate a dispute if he or she is a party to an agreement providing for arbitration. Is the owner of a corporation or LLC bound by the company's agreement to arbitrate disputes. Of course not. That is one of the benefits of incorporation. In this case, the Court noted that "the owner is not a signatory to the contract; in fact, his name does not appear anywhere in the contract. Moreover, the owner did not negotiate the contract with the Plaintiffs. The fact that the owner owned the company which was dissolved a year later in August 2008, may or may not make him liable for certain obligations of the company but it does not make him a party to the agreement to arbitrate at issue here. As an aside, the court states that this is an issue of subject matter jurisdiction that cannot be waived.
See Lee Brown and Guttershutter of Nashville, LLC v. David Styles, LLC
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