6.5 Percent Interest Rate Applies to Sums Due on Arbitration Award, N.Y. Judge Rules

NEW YORK — A New York federal judge has denied American Insurance Group’s (NYSE: AIG) motion to quash restraining notices filed by AXA Versicherung AG seeking to secure payment of $126,896 in interest on a reinsurance arbitration award.

On April 22, Judge Jed S. Rakoff of the U.S. District Court for the Southern District of New York found the parties had clearly agreed that a 6.5 percent interest rate should apply to the award.

On July 27, an arbitration panel ordered AIG to pay AXA $10 million in compensatory damages and $1 million in punitive damages, plus interest, for claims …