City of Piqua v. Ohio Farmers Insurance

Ohio Farmers Insurance Company appeals from the order of the trial court referring this case to arbitration. The trial court found that Ohio Farmers, as surety, was bound by an arbitration provision in the general contract between its principal, Hughes-Bechtol, Inc., and the city of Piqua. For the reasons stated below, we overrule the assignment of error and affirm the judgment of the trial court.

I

On April 25, 1986, Hughes-Bechtol entered into the primary contract with Piqua for installation of a district steam-heating distribution system. That contract contained an arbitration clause,…