STORY FROM: Reinsurance & Arbitration
Retrocessional Dispute Was Properly Arbitrated, 3rd Circuit Affirms
October 19, 2009
NEW YORK - A Pennsylvania federal court properly compelled arbitration of a retrocessional dispute because the contracts at issue incorporated the arbitration clause in the underlying reinsurance contracts, the 3rd Circuit U.S. Court of Appeals ruled Oct. 15. Century Indemnity Co. v. Certain Underwriters at Lloyd's, London, No. 08-2924 (3rd Cir.).
The appellate court further ruled that the arbitration clause encompassed the dispute between Century Indemnity Co. and Certain Underwriters at Lloyd's, London.
Argonaut Insurance Co. insured Western Asbestos Co. and Western MacArthur Co. (Western, collectively) for losses arising from the insureds' distribution of asbestos products. Century's predecessor, the Insurance ...