7th Cir. Upholds Remand of Reinsurance Action Between Pine Top Receivables, Transfercom

CHICAGO — A federal appellate court has upheld a trial court’s remand of a reinsurance action filed by Pine Top Receivables of Illinois (PTRIL) against Transfercom Ltd., ruling that a service of suit clause obligates Transfercom to abide by PTRIL’s choice of forum.

In a Sept. 1 ruling, the 7th Circuit U.S. Court of Appeals rejected Transfercom’s argument that the reinsurance treaties’ arbitration clause renders the service of suit clause ambiguous and unenforceable. The appellate court held that adopting the heightened “clear and unequivocal” interpretation standard urged by Transfercom would be “contrary to the right of parties to contract in …