The Alabama Supreme Court has followed the Eighth Circuit’s lead, concluding that when the parties agree to arbitrate pursuant to the AAA Rules, they have clearly and unmistakably authorized the arbitrator to determine who is bound by that arbitration agreement. Federal Ins. Co. v. Reedstrom, __ So. 3d __, 2015 WL 9264282 (Ala. Dec. 18, 2015).
The dispute in Reedstrom centered on whether an executive liability insurance policy covered a judgment against a former executive for misconduct. The executive sued the insurance company for breach of contract, and the company moved to compel arbitration. The trial court denied the motion without any rationale.
