STORY FROM: Reinsurance & Arbitration

Ga. Federal Court to Decide Whether $1 Million Reinsurance Action Must be Arbitrated

AUSTIN, Texas - A Georgia federal court must decide whether a $1 million reinsurance dispute filed by the special deputy receiver of Gramercy Insurance Co. against a New Zealand insurer should be arbitrated, a Texas federal judge has ruled.

On Jan. 19, Senior Judge Sam Sparks of the U.S. District Court for the Western District of Texas transferred the case to the Northern District of Georgia, as mandated by the forum selection clause in the reinsurance agreement at issue.

Gramercy and New Zealand insurer Contractor's Bonding Ltd. entered into a reinsurance agreement pursuant to a reinsurance program involving Danish insurer ...

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