STORY FROM: Reinsurance & Arbitration

N.J. Federal Judge Sends Environmental Contamination Dispute to Arbitration

TRENTON, N.J. — A New Jersey federal judge has sent to arbitration an environmental contamination coverage dispute between a former subsidiary of Exxon and a group of French insurers, ruling that the policies’ arbitration provision is valid and enforceable.

On Feb. 6, Judge Susan Wigenton of the U.S. District Court for the District of New Jersey found the arbitration provision falls under the Convention on the Recognition and Enforcement of Foreign Arbitral Awards and therefore the dispute must be arbitrated.

Cornell-Dubilier Electronics Inc. (CDE), a former subsidiary of Exxon Mobil Corp., is liable for damage from the release of certain ...

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