Grand Wireless, Inc. v. Verizon Wireless, Inc., No. 13-1149 (1st Cir. 2014)
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In 2002, Grand Wireless, Inc. (“Grand”) and Verizon Wireless, Inc. (“Verizon”) entered into an agreement authorizing Grand to act as a Verizon sales agent. The agreement contained an arbitration provision. In 2011, Verizon notified Grand of its intent to terminate the relationship. According to Grand’s complaint, Verizon subsequently mailed a postcard to Grand’s customers proclaiming that certain Grand stores had “closed." Erin McCahill, a Verizon employee, had allegedly authorized the mailing knowing it to be false. Grand brought this action in Massachusetts state court against Verizon and McCahill, alleging a violation of RICO against McCahill and several state law claims against McCahill and Verizon. The case was removed to the federal district court, where Defendants moved for an order compelling arbitration of Grand’s claims. Grand opposed the motion, arguing that because McCahill was not a signatory to the contract containing the arbitration clause, the claim against her could not be arbitrated. The district court denied Defendants’ motions. The First Circuit Court of Appeals reversed, holding (1) Grand’s claims were within the scope of the parties’ arbitration agreement; and (2) arbitration of the claims against McCahill was not barred despite her status as a non-signatory of the arbitration agreement.
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