Chase v. Blue Cross of California

Opinion

CORRIGAN, J.

The court below refused to order arbitration despite an arbitration agreement in an insurance contract between the parties. Blue Cross of California (Blue Cross) contends the court misapplied governing state case law in denying arbitration. Alternatively, Blue Cross argues state case law is preempted to the extent it conflicts with the Federal Arbitration Act (FAA) (9 U.S.C. § 1 et seq.). We agree with Blue Cross’s first contention. Consequently, we reverse and remand for reconsideration under the proper state law standard. Additionally, we hold state law on this subject is…