L. A. Unified Sch. Dist. v. Safety Nat'l Cas. Corp.

Good Law
13 Cal. App. 5th 471·2017 Cal. App. LEXIS 614·220 Cal. Rptr. 3d 546·2017 WL 2963003
Court of Appeal of CaliforniaJuly 12, 2017B275597California4,415 words

Opinion

Lead Opinion

Grimes, J.

*475 SUMMARY

The question in this case is whether the procedural provisions of the Federal Arbitration Act (FAA, 9 U.S.C. § 1 et seq. ) apply to a motion to compel arbitration in a California state court, where the arbitration agreement is *476 governed by the FAA (because it involves interstate commerce), but the agreement has no choice-of-law provision, and no provision stating the FAA's procedural provisions govern the arbitration.

We conclude California procedure applies in these circumstances, and the trial court did not abuse its discretion when it denied an insurer's motion to compel arbitration with its insured, based on the possibility of conflicting rulings in pending litigation with third parties. ( Code Civ. Proc., § 1281.2, subd. (c) ( section 1281.2(c) ).)

FACTS

In September 2015, plaintiff Los Angeles Unified School District sued 27 insurance companies that had issued policies of primary or excess liability insurance to plaintiff. Plaintiff alleged the insurers breached their insurance contracts and tortiously breached the covenant of good faith and fair dealing by refusing to provide coverage-under more than 100 insurance policies spanning the years between…

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