STORY FROM: Reinsurance & Arbitration

Underwriters Urge Mo. Federal Judge to Send $2.65 Million Action to Arbitration

MISSOULA, Mont. — Certain Underwriters at Lloyds London are urging a Montana federal judge to send a $2.65 million reinsurance action to arbitration, arguing that the agreement’s service-of-suit clause does not override the contractual arbitration provision.

In a July 31 brief filed before Judge Dana L. Christensen of the U.S. District Court for the District of Montana, Underwriters dispute the Montana Association of Counties Property and Casualty Trust (MACo)’s argument that the arbitration agreement’s “service of suit” clause acts as an exception to the arbitration provision.

“On MACo’s reading, this provision gives it the unqualified right to unilaterally decide ...

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