Dispute Involving Reinsurance Participation Agreement is Arbitrable, Calif. Federal Judge Rules

SAN JOSE, Calif. — A dispute arising from a reinsurance participation agreement is arbitrable because the insured’s claims relate to the “execution, delivery, construction, and/or enforceability” of the agreement, as well as an alleged breach of the agreement, all of which fall under the scope of the arbitration clause, a California federal judge has ruled.

On Dec. 11, Judge Edward J. Davila of the U.S. District Court for the Northern District of California held that the arbitration clause itself is not unconscionable and is not tainted by another, unconscionable provision in the RPA.

Randazzo Enterprises Inc., a California construction …