Coverage Dispute Falls Within Narrow Arbitration Clause, Judge Rules

NEW YORK - A New York federal judge has compelled arbitration of a coverage dispute, ruling that resolution may require the decision-maker to interpret the parties' Indemnity Agreement containing the arbitration clause, therefore the dispute falls within the narrowly worded clause. Alfa Laval U.S. Treasury Inc., et al. v. National Union Fire Insurance Company of Pittsburgh, No. 11-1872 (S.D. N.Y.).

On Jan. 26, Judge Richard J. Holwell of the U.S. District Court for the Southern District of New York further ruled that the non-signatory plaintiffs may be compelled to arbitrate because they received "direct benefits from the insurance policies, in …