Judge Orders Sun Life, Liberty Mutual to Arbitrate Dispute

SAN DIEGO - A broadly-worded arbitration clause requires the parties to a reinsurance contract to arbitrate a dispute regarding their rights and liabilities under the contract, a California federal judge has ruled. Sun Life Assurance Company of Canada v. Liberty Mutual Insurance Co., et al., No. 09-2133 (S.D. Calif.).

Judge Jeffrey T. Miller of the U.S. District Court for the Southern District of California on Dec. 9 stayed award confirmation proceedings pending arbitration.

Sun Life and Golden Eagle's predecessor entered two reinsurance contracts in 1995. Golden Eagle's predecessor later assigned the contracts to San Diego Insurance Co. and Golden Eagle …