N.Y. Federal Judge Compels Arbitration of Coverage Dispute, Finding Arbitration Clause is ‘Mandatory’

NEW YORK — A New York federal judge has adopted a magistrate judge’s recommendation that a coverage dispute involving Steadfast Insurance Co. be submitted to arbitration, finding the policy’s arbitration clause is mandatory.

On Dec. 6, Judge Edward R. Korman of the U.S. District Court for the Eastern District of New York rejected the insured’s assertion that "a request by either party" for arbitration is a condition precedent to arbitration, and that if the condition is not satisfied, the "obligation to arbitrate is not operative or binding."

MQDC Inc., the construction manager on a mixed-use development in Flushing, N.Y., …