Huntsman, Reinsurers Will Mediate $45 Million Coverage Action

HOUSTON - Huntsman Corp., its captive insurer and several reinsurers have agreed to mediate a $45 million dispute over coverage for a 2006 explosion at Huntsman's Texas plant. Huntsman Corp. v. International Risk Insurance Co. v. ACE American Insurance Co., No. 4:08-cv-01542 (S.D. Texas).

In a Jan. 28 settlement agreement and arbitration submission agreement, the parties agreed to participate in a non-binding mediation in February. They further agreed to submit their claims to arbitration if mediation is unsuccessful. Swiss Reinsurance Co. will not participate in the mediation and has agreed to pay the remainder of its quota share.

The participating …