Fraudulent Inducement Claim is Not Arbitrable, Federal Judge Rules

NEW YORK - A fraudulent inducement claim brought by AXA Versicherung AG relating to a $10 million reinsurance facility does not fall within the scope of the arbitration provision in the reinsurance contracts because it does not arise out of the interpretation of those contracts, a New York federal judge has ruled. AXA Versicherung AG v. New Hampshire Insurance Co., et al., No. 05-10180 (S.D. N.Y.).

In a May 3 order, Judge Jed S. Rakoff of the U.S. District Court for the Southern District of New York further ruled that the defendants, three American International Group subsidiaries, waived their right …