{"id":902473,"date":"2024-03-28T11:33:46","date_gmt":"2024-03-28T17:33:46","guid":{"rendered":"https:\/\/www.myconstructionexpert.com\/blog\/?p=902473"},"modified":"2024-03-28T11:33:50","modified_gmt":"2024-03-28T17:33:50","slug":"arbitration-clause-solar-contractors-bond-claims","status":"publish","type":"post","link":"https:\/\/www.myconstructionexpert.com\/blog\/arbitration-clause-solar-contractors-bond-claims\/","title":{"rendered":"California Court Sends Solar Contractor\u2019s Bond Claims to Arbitration"},"content":{"rendered":"\n<p>John Mark Goodman | <a href=\"https:\/\/www.buildsmartbradley.com\/2024\/03\/california-court-sends-solar-contractors-bond-claims-to-arbitration\/?utm_source=Bradley+Arant+Boult+Cummings+LLP+-+BuildSmart&amp;utm_campaign=b36274691a-RSS_EMAIL_CAMPAIGN&amp;utm_medium=email&amp;utm_term=0_b504caf31b-b36274691a-78863422\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">BuildSmart<\/a><\/p>\n\n\n\n<p>A California federal court ruled last week that a surety can enforce an <a href=\"https:\/\/www.myconstructionexpert.com\/blog\/agreement-termination-arbitration-agreement\/\">arbitration clause<\/a> in a contract to which it is not a party. The dispute involves performance and payment bond claims brought by solar contractor Swinerton Builders, Inc. Swinerton brought the claims in California federal court against Argonaut Insurance, the surety of a mechanical subcontractor who defaulted after its owner and license qualifier passed away. The surety moved to compel arbitration pursuant to the dispute resolution provision of the underlying subcontract.<\/p>\n\n\n\n<p>The court recognized that generally only parties to an arbitration agreement may invoke the right to compel arbitration. The court nevertheless held that where a surety bond incorporates an underlying contract that contains an arbitration provision, the surety agrees to be bound by \u2013 and may therefore invoke \u2013 that provision. Furthermore, because the provision at issue adopted the AAA\u2019s Construction Industry Rules, any dispute as to arbitrability of the claims at issue must be decided in the first instance by an arbitrator. The court therefore entered an order compelling arbitration and staying the court action pending final resolution of the arbitration.&nbsp;<\/p>\n\n\n\n<p>A full copy of the court\u2019s decision is available\u00a0<a href=\"https:\/\/www.buildsmartbradley.com\/wp-content\/uploads\/sites\/34\/2024\/03\/Swinerton-Opinion.pdf\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">here<\/a>.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p><strong>When one of your cases is in need of a construction expert, estimates, insurance appraisal or umpire services in defect or insurance disputes &#8211; please call Advise &amp; Consult, Inc. at 888.684.8305, or email <a href=\"mailto:experts@adviseandconsult.net\">experts@adviseandconsult.net<\/a>.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>John Mark Goodman | BuildSmart A California federal court ruled last week that a surety can enforce an arbitration clause in a contract to which it is not a party. The dispute involves performance and payment bond claims brought by solar contractor Swinerton Builders, Inc. Swinerton brought the claims in California federal court against Argonaut&hellip; <a class=\"more-link\" href=\"https:\/\/www.myconstructionexpert.com\/blog\/arbitration-clause-solar-contractors-bond-claims\/\">Continue reading <span class=\"screen-reader-text\">California Court Sends Solar Contractor\u2019s Bond Claims to Arbitration<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false},"version":2}},"categories":[41],"tags":[9895,42],"class_list":["post-902473","post","type-post","status-publish","format-standard","hentry","category-arbitration","tag-advise-consult","tag-arbitration-2","entry"],"jetpack_publicize_connections":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.0 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>California Court Sends Solar Contractor\u2019s Bond Claims to Arbitration - Advise &amp; 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