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Wiggins v. Warren Averett: Alabama Supreme Court Finds in Favor of Warren Averett, Holding That Third-Party Beneficiaries Are Subject to Arbitration Clauses

Photo Credit:

Blake Harper

In Wiggins v. Warrant Averett, the Alabama Supreme Court addressed whether third-party beneficiaries of a contract are subject to binding arbitration clauses in those contracts.  This decision provides needed clarity for Alabama companies on the scope of binding arbitration clauses used in contracts with customers, vendors, and employees. Because Wiggins is a 5-4 decision in which two justices concurred specially, companies and their counsel should monitor future decisions regarding this issue.




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