STORY FROM: Reinsurance & Arbitration

Lawsuit Targeting Reinsurance Participation Agreement Transferred to Neb. Federal Court

SALT LAKE CITY — A Utah federal judge has transferred a case involving Applied Underwriters Inc.’s workers’ compensation insurance program to Nebraska federal court, rejecting plaintiffs’ argument that the forum selection clause in the program’s reinsurance participation agreement is not enforceable.

In a Sept. 27 order, Judge Jill N. Parrish of the U.S. District Court for the District of Utah explained that the plaintiffs failed to allege that the forum selection clause was the result of “fraud or overreaching” and that voiding the clause requires more than “generalized allegations of fraud.”

Plaintiffs Alpine Building, LLC and Grove Creek, LLC ...

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