Subrogated Insurer May Enforce Arbitration Clause, 9th Cir. Affirms

SAN FRANCISCO - A subrogated insurer may enforce the arbitration clause of a contract between its insured and a third party even though it was not a signatory to the contract, the 9th Circuit U.S. Court of Appeals has affirmed. Allianz Global Risk U.S. Insurance Co. v. General Electric Co., No. 10-55451 (9th Cir.).

In a March 5 opinion, the appellate panel concluded that the third party may not refuse to arbitrate the insurer's subrogation claims.

Allianz Global Risk U.S. Insurance Co. moved to compel General Electric Co. to arbitrate Allianz's claim to recover sums it paid to repair …