Opinion ID: 747974
Heading Depth: 2
Heading Rank: 2

Heading: Parent/Subsidiary Theory

Text: 17 Gemplus argues that as the parent company of Gemplus USA, it may enforce the arbitration provision in the Gemplus USA/Humetrix Agency Agreement even though it is not a party to the arbitration provision. 1 Gemplus argues that it may to enforce the arbitration provision because Humetrix's claims are based on the same facts and are inherently inseparable from the business relationship between Gemplus USA and Humetrix. 18 Humetrix enjoyed a distinct and separate contractual relationship with parent company Gemplus. The Sales and Partnership agreements between Gemplus and Humetrix were not based on the same facts as the Gemplus USA/Humetrix Agency Agreement. As the above discussion indicates, the Sales and Partnership Agreements extend well beyond the Agency Agreement both in time (five years and two years respectively) and in scope in that the direct sales and distribution of Gemplus's smart card technology require investment and responsibility not anticipated in the marketing aims of the Agency Agreement. Thus, even though Gemplus is the parent company of Gemplus USA, it may not invoke the arbitration clause contained in the Agency Agreement because the factual allegations underlying Humetrix's claims against Gemplus are not based on the same facts or inherently inseparable from Humetrix's relationship with Gemplus USA, as embodied in the Agency Agreement. 19 AFFIRMED.