Andersen Service Corporation d/b/a Plumbing Inc. v. Old Republic Surety Company
A subcontractor sued a surety on a section 713.24 lien transfer bond, and the trial court compelled arbitration in Pennsylvania based on the arbitration clause in the subcontractor's subcontract with the nonparty general contractor. The Fourth DCA reversed, holding no valid arbitration agreement existed between the subcontractor and the surety because the surety was a non-signatory to the subcontract and the transfer bond neither contained an arbitration clause nor incorporated the subcontract.
Key facts
- Plumbing subcontractor sued surety Old Republic on a section 713.24 lien transfer bond after a construction dispute.
- Trial court compelled arbitration based on an arbitration clause in the subcontractor's subcontract with the general contractor, a non-party to the bond dispute.
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Why it matters
The opinion gives construction and surety practitioners a clean holding that a transfer bond issued under section 713.24 stands on its own: absent incorporation by reference, the underlying contract's arbitration clause… — full analysis with a trial
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