JACKSON v. STEVENSON

Supreme Court of Georgia·Decided May 19, 2026·No. S25G0922·Published

Opinion

NOTICE: This opinion is subject to modification resulting from motions for reconsideration under Supreme Court Rule 27, the Court’s reconsideration, and editorial revisions by the Reporter of Decisions. The version of the opinion published in the Advance Sheets for the Georgia Reports, designated as the “Final Copy,” will replace any prior version on the Court’s website and docket. A bound volume of the Georgia Reports will contain the final and official text of the opinion.

In the

Supreme Court of Georgia

No. S25G0922

Richard L. Jackson et al.

v.

Mark Stevenson et al.

On Writ of Certiorari from the Court of Appeals of Georgia No. A24A1853

Argued: December 9, 2025  Decided: May 19, 2026

LAND, Justice. We granted certiorari in this case to consider the circumstances under which an entity that is not a signatory to an arbitration agreement can be compelled to arbitrate claims brought against it by a signatory entity under the doctrine of equitable estoppel and whether the arbitrator in this case exceeded his powers by requiring the nonsignatory to arbitrate. We conclude that, under the circumstances of this case, equitable estoppel cannot be applied to compel the nonsignatory entity to arbitrate and that the arbitrator exceeded his powers by doing so. We therefore reverse the judgment of the Court of Appeals affirming the trial court’s order confirming the arbitration award against the non- signatory party, see Jackson v. Stevenson, 374 Ga. App. 741 (2025), vacate the arbitration award against the nonsignatory party, and remand the case to the Court of Appeals for further proceedings consistent with this opinion.

1. Background and Procedural History The relevant facts, as summarized by the Court of Appeals,

are as follows:

The record shows that respondent Jackson and claimant Stevenson, through various companies that each owned, were members of a real estate development joint venture. The Jackson entities owned 70 percent of the venture and the Stevenson entities owned 30 percent.

The venture was governed by two operating agreements [ 1] that contained identical sections requiring arbitration under the Federal Arbitration Act (“FAA”)[ 2] of “[a]ny dispute, controversy or claim arising out of or relating to” the agreements. Under a separate consulting agreement, claimant Stevenson managed the operations of the venture.

In 2022, the Jackson entities sought to terminate the venture. The operating agreements provided that the member who wanted to end the relationship could present a “Buy/Sell Notice” to the other member to buy them out or, at the other member’s election , to sell their ownership interest to the other member. The operating agreements required the transaction to close within 90 days after the right to buy or sell had been exercised.

1 The “Artisan Operating Agreement” was signed by Jackson on behalf of Artisan Built Parent, LLC and Naturewalk Development Company Parent, Inc. The “SAWS Operating Agreement” was signed by Jackson on behalf of SAWS Parent, LLC and JIG Real Estate, LLC (“JIGRE”).

2 9 USC §§ 1-16 (1947).

The Jackson entities offered to buy out the Stevenson entities’ interest for $3 million or to sell their own interest to the Stevenson entities for $7 million, along with the Stevenson entities paying debt owed by the venture. The Stevenson entities opted to buy out the Jackson entities. Less than a week later, Jackson informed Stevenson that he was terminating the consulting agreement for cause.

The Stevenson entities … filed a demand for arbitration with the American Arbitration Association under the arbitration clauses in the two operating agreements. The [Stevenson entities] named Jackson and his companies as respondents.

Initially, the [Stevenson entities] sought the arbitrator ’s supervision of the closing, but once the deadline for the closing had expired, they amended their statement of claim to allege that the [Jackson entities ] had engaged in misconduct to foil the closing. The [Stevenson entities] asserted claims for, among other things, breach of contract, breach of fiduciary duty, and aiding and abetting breaches of fiduciary duty. The [Jackson entities] filed a counterclaim seeking a declaration that their termination of the consulting agreement was for cause because of the [Stevenson entities]’ mismanagement and fraud.

Eventually, the [Stevenson entities] sought to include RICSHA, another Jackson-owned company, as

a respondent.[ 3] The [Stevenson entities] alleged that the [Jackson entities] and RICSHA had conspired to deprive the venture of valuable assets that were part of the venture when the [Stevenson entities ] agreed to buy the [Jackson entities]’ interest for $7 million and that the value of the venture would be reduced by removal of those assets. The arbitrator ordered RICSHA to be added.[ 4]

After a six-day evidentiary hearing, the arbitrator issued a final award ruling partly in favor of the [Stevenson entities] and partly in favor of the [Jackson entities]. The arbitrator found that the [Stevenson entities]’ management of the venture resulted in material financial loss, authorizing termination of the consulting agreement.

The arbitrator also found, however, that the [Jackson entities] breached the buy-sell provision in the operating agreements in two ways. First, the arbitrator found that the [Jackson entities] improperly adjusted the venture’s finances by increasing the debt the venture owed to a Jackson-owned company, which increased the amount the [Stevenson entities] would have to pay at closing. Second, the arbitrator

3 It is undisputed that RICSHA was not a signatory to either of the operating agreements.

4 In making this determination, the arbitrator found that RICSHA was “wholly owned and controlled by” Jackson and that the Stevenson entities’ “conspiracy claims against the [Jackson entities] and RICSHA [we]re based on the same general facts and circumstances, ar[o]se from the same essential transaction or occurrence, [we]re based on the same operative facts, and [we]re inherently intertwined with the other pending claims in this case.”

found that, after the [Stevenson entities] had exercised the right to buy, the [Jackson entities] improperly removed from the venture’s balance sheet certain assets, specifically parcels and options to purchase parcels of property, including one that was technically owned by now-respondent RICSHA but which had always been recognized as an asset of the venture.

The net result was an award to the [Stevenson entities ]. The arbitrator awarded the [Stevenson entities ] as compensatory damages $3,752,700 plus interest against the [Jackson entities] and RICSHA.

The [Stevenson entities] filed an application in [the trial] court to confirm the award. Now-respondent RICSHA filed an application to vacate the award and, 11 days later, a separate motion to vacate the award. The other [Jackson entities] answered the confirmation application. More than two months later, the other [Jackson entities] filed a “notice of joinder” in RICSHA’s motion to vacate.

The [trial] court found that the [Jackson entities] other than RICSHA “did not file a timely and sufficient motion to vacate, so their purported opposition to confirmation [was] barred by the FAA’s statute of limitation[ ].” The court found that the arbitrator did not exceed his powers by including RICSHA as a party to the arbitration, and so denied its motion to

vacate the award.[ 5] The court granted the application to confirm the award, and RICSHA and the other [Jackson entities] filed this appeal.

Jackson, 374 Ga. App. at 741–43.

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