STORY FROM: Reinsurance & Arbitration

Signatory to Arbitration Agreement Not Compelled to Arbitrate with Non-Signatory, Texas High Court Rules

AUSTIN, Texas — The Texas Supreme Court has ruled that the signatory to an arbitration agreement in a crop insurance policy is not required to arbitrate its claims against a non-signatory because the agreement only contemplated arbitration between the insured and the policyholder.

In a May 11 opinion written by Justice Eva M. Guzman, the state high court further held that arbitration cannot be compelled pursuant to alternative theories because the policyholder’s claims against the agent are independent of the insurance policy.

Jody James Farms purchased a Crop Revenue Coverage Insurance Policy from Rain & Hail LLC, through an independent ...

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