Washington v. Persona Identities, Inc.

Plaintiff filed a lawsuit against a software company that provides businesses with identity verification services alleging violation of the Biometric Information Privacy Act. Defendant moved to stay the plaintiffs’ claims and compel arbitration. The circuit court granted the motion and plaintiffs appealed. The appellate court reversed, finding that defendant could not benefit from the provisions of an agreement between the plaintiffs and their employer, which was not a party to the lawsuit, under a theory of being an intended third-party beneficiary of the agreement and, as a result, could not compel arbitration pursuant to the terms of the agreement to which it was not a party. (HETTEL and ALBRECHT, concurring)