Pine Top Receivables May Not Compel Arbitration of $2 Million Reinsurance Dispute, Judge Rules

CHICAGO — Pine Top Receivables of Illinois may not compel Banco de Seguros del Estado to arbitrate a $2 million reinsurance dispute, an Illinois judge has ruled, finding an agreement assigning certain collection rights to PTRIL did not convey the power to compel arbitration.

On June 11, Judge Marvin E. Aspen of the U.S. District Court for the Northern District of Illinois found the agreement’s specific list of rights did not include the right to arbitrate.

Between 1977 and 1984, Banco entered into five reinsurance contracts with Pine Top Insurance Co. In 1986, the Circuit Court of Cook County placed …