The enforceability of arbitration agreements is governed by the rules applicable to contracts. Although the plaintiff did not sign the agreement in her individual capacity, she is bound by the arbitration clause under the direct benefits theory of estoppel, as the allegations in the complaint show that she knowingly exploited the benefits of the agreement and received benefits flowing directly from that agreement. The defendants did not waive the defense that the parties' dispute was subject to arbitration. The defendants' conduct in appearing in and defending this state court action was not inconsistent with the affirmative defense asserted in their answer that the plaintiff's claims were subject to arbitration.
Belchikov v. XTP Implementation Servs., Inc., NY Slip Op 02054 (2d Dep't April 9, 2025)
