$8 Million Dispute Between Ace, Highland, Sent to Arbitration

SAN DIEGO - A reinsurance dispute between Ace USA and Highland Insurance Co. should be sent to arbitration in accordance with an earlier federal appellate court ruling that deems the claims arbitrable, a California federal judge has ruled. Highland Insurance Co. v. Ace USA, No. 02-2165 (S.D. Calif.).

On July 22, Judge William Q. Hayes of the U.S. District Court for the Southern District of California granted Highland' motion to dismiss the suit without prejudice.

Beginning in the 1960s, Eagle Star and Highland participated in insurance/reinsurance pools managed by broker Cravens Dargan & Co. Under these arrangements, Highland reinsured Eagle …