Section 10.58 May the Surety Compel Arbitration?

• Library: Construction Law 2016 Supp

C. (§10.58) May the Surety Compel Arbitration?

Conversely, the general rule is that a surety may not compel arbitration of a dispute for the same reason—it is not a party to the contract. Under the FAA, it has been held that a contractor’s right to arbitration does not exist in the surety. United States ex rel. Frank A. Trucco & Sons Co. v. Bregman Constr. Corp., 256 F.2d 851 (7^th Cir. 1958). But there have been situations in which the courts have granted the surety the right to compel arbitration if it...