Service-Of-Suit Clause Does Not Override Arbitration Clause, Judge Rules

SEATTLE - A Washington federal judge has ordered arbitration of an insurance coverage dispute, ruling that the policies’ service-of-suit clause does not supersede the arbitration clause, but rather provides a means of enforcing an arbitration award.

Judge Ricardo S. Martinez of the U.S. District Court for the Western District of Washington further held that Washington and federal public policy support this interpretation of the service-of-suit clause.

Pacific West Securities Inc., an investment group, worked with Discovery Resources Development LLC, an energy corporation working in speculative oil and gas exploration. As the brokers/manager of Discovery security offerings, Pacific recommended Discovery securities …