Lennar Corp. v. General Security Indemnity Co. etc
Excess insurer General Security Indemnity Company of Arizona (General Security) filed a motion to compel arbitration of claims brought against it by its insureds Lennar Corporation, Lennar Homes of California, and Lennar Sales Corporation (collectively, Lennar). The trial court denied the motion on the grounds that, under Code of Civil Procedure section 1281.2, subdivision (c) (section 1281.2(c)), the existence of other litigation between Lennar and excess insurer Interstate Fire and Casualty Company (Interstate) relating to the same claims created a possibility of inconsistent results. We affirm for the following reasons.
First, General Security failed to prove the existence of a valid arbitration agreement between it and Lennar. Second, section 1281.2(c) was not preempted by the Federal Arbitration Act, and was applicable in this case. Finally, the trial court did not err in finding that under section 1281.2(c), the motion to compel arbitration should be denied.
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