|
A representative organization that brings an action on behalf of its members is bound to arbitrate when the organization's members have signed arbitration agreements with the opposing party, a state court in Tennessee held.
In Tennessee Medical Ass'n v. BlueCross BlueShield of Tennessee, Inc., No. M2005-01278-COA-R3CV, 2007 WL 63610 (Tenn. Ct. App. Jan. 09, 2007), Tennessee Medical Association (TMA) brought a series of claims against BlueCross BlueShield of Tennessee (BCBST) on behalf of TMA member physicians.
TMA member physicians had executed agreements with BlueCross BlueShield of Tennessee (BCBST) that contained arbitration clauses. TMA was not a signatory to these agreements; however, BCBST moved to compel arbitration of TMA's claims pursuant to the BCBST/physician agreements.
This Court rejected TMA's argument that it should not be obligated to arbitrate its claims against BCBST because it was not a signatory to the arbitration agreement. TMA's claims depended entirely on the contractual relationship between BCBST and TMA member physicians.
Further, the Court noted that the physicians who signed the arbitration agreements should not be allowed to "escape their commitments merely by having a representative sue on their behalf."
Subscribe to a free weekly update on ADR case law and
legislation
|