STORY FROM: Reinsurance & Arbitration

N.Y. Judge Refuses to Dismiss Applied Underwriters Action for Forum Non Conveniens

NEW YORK — A New York judge has denied Applied Underwriters Inc.’s motion to dismiss an action arising from its EquityComp workers’ compensation program, ruling that the insurer waited too long before arguing that the dispute should be litigated in Nebraska.

In a May 4 order, Judge Marguerite A. Grays of the Queens County (N.Y.) Supreme Court said AUI offered no plausible excuse for its two-year delay in seeking to enforce the Reinsurance Participation Agreement (RPA)’s forum selection clause. As such, enforcement of the forum selection clause would be “unreasonable and unjust,” the judge concluded.

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