STORY FROM: Reinsurance & Arbitration

Ala. Federal Judge Sends $1.3 Million Reinsurance Action to Arbitration

MOBILE, Ala. — An Alabama federal judge has sent a $1.3 million reinsurance action to arbitration, finding the dispute falls within the scope of the arbitration clause contained in the reinsurance agreement at issue in the cedent’s amended complaint.

In a Sept. 7 order, Senior Judge W. Harold Albritton of the U.S. District Court for the Middle District of Alabama also held that the cedent did not waive its right to arbitrate by filing suit in federal court because in its original complaint, it did not allege breach of a contract containing an arbitration clause.

The judge further ruled ...

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