Coverage Dispute Does Not Fall Within ‘Narrow’ Arbitration Clause, N.Y. Federal Judge Rules

NEW YORK — A New York federal judge has denied Lexington Insurance Co.’s motion to compel an insured to arbitrate an insurance dispute, finding the question of coverage does not turn on an interpretation of the policy as required by its narrowly-worded arbitration clause.

On May 7, Judge Shira A. Scheindlin of the U.S. District Court for the Southern District of New York explained that the policy’s arbitration clause only applies to disagreements arising out of policy interpretation.

In 2007, UPS entered into a guard services agreement with Adelis International Security, under which Adelis agreed to provide UPS with uniformed …