Mass. Judge Allows Reinsurance Arbitration to Proceed; Finds No Violation of Umpire Selection Agreement

BOSTON — A Massachusetts federal judge has refused to halt a reinsurance arbitration between Allstate Insurance Co. and OneBeacon American Insurance Co., finding OneBeacon did not breach the parties’ umpire selection protocol.

On Oct. 8, Judge Nathaniel Gorton of the U.S. District Court for the District of Massachusetts denied Allstate’s motion to enjoin the arbitration and remove the umpire, explaining that any harm Allstate may suffer can be remedied through a post-award challenge.

This case arises from a series of reinsurance contracts between Allstate and OneBeacon, all of which contain an arbitration provision. In April 2012, OneBeacon demanded arbitration of …