Sorority loses arbitration fight over student’s sexual assault negligence claim

She did not sue the sorority for the assault. She sued for negligence – arguing the sorority required her attendance, knew or should have known about the fraternity’s track record, and failed to protect its members. 

The sorority’s response was an arbitration clause in its membership contract: all disputes to be resolved “by arbitration in Indiana before one arbitrator.” The lower court agreed and ordered arbitration. 

The appellate court reversed. 

The EFAA, which Congress enacted in 2022, makes predispute arbitration agreements unenforceable in any case that “relates to” a sexual assault or harassment dispute. The sorority argued the statute did not reach a negligence claim brought against a party that did not commit the assault. 

The court was not persuaded. It read “relates” broadly – requiring only a “logical connection or nexus” to the sexual assault dispute. Here, the student’s entire negligence theory rested on the sorority placing her in a situation that led to the assault. That connection was enough.