A non-party to an arbitration agreement may be treated as claiming 'through or under' a party under s 7(4) of the International Arbitration Act 1974 (Cth) where the non-party's negligence claim is derivative in the sense that essential elements of the cause of action are vested in or exercisable by the party to the arbitration agreement. This applies even where the non-party is not a privy, assignee, or in a parent-subsidiary relationship with the party, but is a related company in the same corporate group whose claim depends almost entirely on facts pleaded in relation to the party to the agreement. Courts may impose conditions on a stay under s 7(2), including that arbitration not commence until related court proceedings are determined.
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