Forum Selection Clause Requires Vacatur of Arbitration Award, Tenn. Federal Judge Rules

MEMPHIS, Tenn. — A forum selection clause in a reinsurance participation agreement (RPA) is valid and enforceable and therefore requires vacatur of an arbitration award, a Tennessee federal judge has ruled, holding that on its face, the clause is clearly mandatory.

In a Feb. 2 order, Chief Judge Daniel Breen of the U.S. District Court for the Western District of Tennessee then dismissed the action for forum non conveniens, explaining that the action should have been filed in Nebraska state court.

In September 2008, Milan Express Co. obtained workers’ compensation coverage from Applied Underwriters Workers Compensation Profit Sharing Plan.