Claims Handler Must Arbitrate $2 Million Dispute with Excalibur Re, Ga. Appeals Court Rules

ATLANTA — A claims handler must arbitrate a $2 million subrogation action with Excalibur Reinsurance Corp., the Georgia Court of Appeals has affirmed, ruling that a cedent’s assignment of its arbitration rights to Excalibur was valid under the claims handling agreement at issue.

In a Nov. 20 opinion, the appellate court found the assignment did not breach the claims handling agreement’s anti-assignment clause because the agreement had already been fully executed.

In September 2005, McLarens International Inc. entered into a claims handling agreement (CHA) with American Safety Casualty Insurance Co. Pursuant to the CHA, McLarens provided claims management and …