Puerto Rico Federal Judge Compels Arbitration of $56 Million Reinsurance Dispute

SAN JUAN, Puerto Rico — A Puerto Rico federal judge has compelled arbitration of a lawsuit seeking more than $56 million in reinsurance coverage for claims arising from two hurricanes that devastated Puerto Rico in September 2017.

In a Dec. 4 order, Judge Daniel Dominguez of the U.S. District Court for the District of Puerto Rico found the arbitration clause in the reinsurance agreements is not ambiguous and that the cedent’s claims fall within its scope.

On Sept. 6, 2017, Hurricane Irma hit Puerto Rico, causing significant damage to the island’s infrastructure, properties and businesses, many of which were without …