Right to Arbitrate Not Based Upon 'Race to Courthouse,' Court Affirms

NEW YORK - The right to arbitrate is not dependent upon which party initiates the dispute first, therefore an insurance coverage dispute should be arbitrated pursuant to the parties' arbitration provision, a New York appellate court has affirmed. Republic Mortgage Insurance Co. v. Countrywide Financial Corp., No. 06292 (N.Y. App. Div., 1st Dept.).

The New York Appellate Division, 1st Department, ruled that the parties could not have intended that the insurer could thwart the policyholders' right to arbitrate "by winning a race to the courthouse."

Republic Mortgage Insurance Co. issued five mortgage insurance policies to Countrywide Financial Corp. and The …