Ex Parte Stamey
Supreme Court of Alabama
776 So.2d 85 (2000)
George and Deborah Stamey (plaintiffs) contracted to buy property and a mobile home from Hallmont Homes (defendant), which was required to provide a foundation, septic system, and light pole. The Stameys financed the purchase through Green Tree Financial (defendant), whose agreement required binding arbitration, provided that Green Tree would pay Hallmont directly on the Stameys' behalf, and waived jury trial rights for any claim involving Hallmont. After a county health officer sued the Stameys over septic-system violations, the Stameys brought third-party claims against Green Tree, Hallmont, and two employees. Hallmont and Green Tree moved to compel arbitration; the trial court granted both motions even though Hallmont never signed the financing agreement containing the arbitration clause. The Stameys petitioned for a writ of mandamus to vacate the order.
Whether a party that is not a signatory to a contract may assert rights under that contract.