Arbitrators Should Decide Commutation Issue, Judge Rules

AUSTIN, Texas - A Texas federal judge has sent to arbitration a reinsurance contract dispute between Greenlight Reinsurance Ltd. and Medicus Insurance Co., ruling that the contract contains a valid agreement to arbitrate and that the dispute falls within the scope of the arbitration agreement. Medicus Insurance Co. v. Greenlight Reinsurance Ltd., No. 1:10-277 (W.D. Tex.).

Judge Lee Yeakel of the U.S. District Court for the Western District of Texas rejected Medicus' assertion that the contract's commutation provision overrides the arbitration agreement. The existence of a valid arbitration agreement mandates that the arbitrators, not the court, should determine other rights …