N.Y. Federal Judge Compels Arbitration of Superstorm Sandy Coverage Action

NEW YORK — A New York federal judge has compelled arbitration of a Superstorm Sandy property damage dispute, ruling that the policyholder is bound by the policy’s arbitration provision because it did not object to the policy’s terms when the coverage was being negotiated.

On June 5, Judge Edgardo Ramos of the U.S. District Court for the Southern District of New York further ruled that the policy’s service of suit clause does not render the arbitration provision null and void; rather, the two provisions can be read together in harmony.

In May 2012, the New Jersey Transit Corp. bought property …