Federal Judge Sends $8 Million Battle to Arbitration

HARRISBURG, Pa. - A Pennsylvania federal judge has sent a dispute over $8 million in collateral to arbitration, ruling that the arbitration clause in the reinsurance treaty at issue is valid and encompasses the issues. Lincoln General Insurance Co. v. Clarendon National Insurance Co., et al., No. 4:08-cv-00582 (M.D. Pa.).

In an Aug. 15 order, Judge John E. Jones III of the U.S. District Court for the Middle District of Pennsylvania also confirmed former Pennsylvania Insurance Commissioner Constance Foster as the party arbitrator for plaintiff Lincoln General Insurance Co.

In March 2003, Lincoln General issued a quota share reinsurance treaty …