STORY FROM: Reinsurance & Arbitration

Excess Insurer Barred from Arbitrating $44 Million Coverage Dispute, Mo. Federal Judge Says

KANSAS CITY — An excess insurer is barred from arbitrating a $44 million coverage dispute because the arbitration provision in its policy contravenes Missouri law, which prohibits mandatory arbitration provisions in insurance contracts, a Missouri federal judge has ruled.

In a Dec. 8 order, Chief Judge Greg Kays of the U.S. District Court for the Western District of Missouri rejected the insurer’s argument that Kansas law applies to the policy, finding that honoring such law would contravene Missouri public policy.

The dispute stems from a $44 million judgment entered against Solaris Power Services LLC in the Jackson County (Mo.) Circuit ...

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Armstrong Teasdale
Schmitt Mulhern

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