| 1. Multiparty disputes have long been a source of |
| controversy in the enforcement of agreements to arbitrate. |
| When conflict erupts in complex transactions involving |
| multiple contracts, it is rare for all parties to be |
| signatories to a single arbitration agreement. In such cases, |
| some parties may be bound to arbitrate while others are not; |
| in other situations, there may be multiple arbitration |
| agreements. Such realities raise the possibility that common |
| issues of law or fact will be resolved in multiple fora, |
| enhancing the overall expense of conflict resolution and |
| leading to potentially inconsistent results. See III Macneil |
| Treatise § 33.3.2. Such scenarios are particularly common in |
| construction, insurance, maritime and sales transactions, but |
| are not limited to those settings. See Thomas J. Stipanowich, |
| Arbitration and the Multiparty Dispute: The Search for |
| Workable Solutions, 72 Iowa L. Rev. 473, 481-82 (1987). |