California Court of Appeal

In a case in which a corporation's short-term creditors brought suit against a financial advisor to the corporation, alleging that his fraudulent misrepresentations induced them to forbear from foreclosing on their security, the trial court's denial of the financial advisor's petition to compel arbitration is affirmed, where the short-term creditors were not third-party beneficiaries of the contract between the financial advisor and the corporation, since the advisor's satisfaction of his contractual obligations to the corporation would not have satisfied the corporation's obligations to the short-term creditors.

Appellate Information

• Decided 04/16/2012
• Published 04/16/2012

Judges

• Croskey

Court

• California Court of Appeal

Counsel

• For Appellant:
  
• Jacobson, Russell, Saltz & Fingerman, Law Offices of John A. Belcher