Joint Loss Agreement Does Not Allow Lexington to Participate in Primary Insurer’s Arbitration, Wis. Judge Rules

MILWAUKEE — A joint loss agreement incorporated into a policy issued by Lexington Insurance Co. to a government insurance fund does not allow for Lexington’s participation in an arbitration between the fund and another insurer, a Wisconsin federal judge has ruled.

On April 17, Judge J.P. Stadtmueller of the U.S. District Court for the Eastern District of Wisconsin held that the plain terms of the JLA do not apply to Lexington.

In 2013, a fire severely damaged the Milwaukee County Courthouse, which was insured under a primary policy issued by the State of Wisconsin Local Government Property Insurance Fund. …