N.Y. Federal Judge Orders Insurer to Arbitrate Subrogation Dispute with Chilean Company

NEW YORK — A New York federal judge has ordered an insurer to arbitrate in New York its subrogation claims against a Chilean company, finding the arbitration agreement in the contract at issue is valid and encompasses the dispute.

On Oct. 31, Judge Laura Taylor Swain of the U.S. District Court for the Southern District of New York also issued an injunction barring the further prosecution of the subrogation action in Chile pending the outcome of the New York arbitration.

In 1997, Alstom Chile S.A. and Alstom Power Systems S.A. entered into an agreement with Gas Atecama Generacion S.A. for …