STORY FROM: Reinsurance & Arbitration

Century Says Reinsurance Dispute with Lloyd’s Should be Sent to Arbitration

BOSTON — Century Indemnity Co. is urging a Massachusetts federal court to send its reinsurance dispute with Certain Underwriters at Lloyd’s London to arbitration, arguing that under federal law, the question of arbitrability is for arbitrators, not the court, to decide.

In a July 19 sur-reply filed in the U.S. District Court for the District of Massachusetts, Century maintains that the question is not governed by New York law, and even if it were, the New York Court of Appeals has repeatedly held that arbitrators decide the preclusive effect of a prior arbitration award.

Century and Lloyds’ are parties ...

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