Wis. Federal Judge Retains Jurisdiction Over Courthouse Fire Action, Says Entire Dispute Not Subject to Arbitration

MILWAUKEE, Wis. — A Wisconsin federal judge has denied an insurer’s motion for judgment on the pleadings in a dispute involving coverage for a courthouse fire that caused $18 million in damages, rejecting the insurer’s argument that the dispute is subject to arbitration pursuant to the policy’s Joint Loss Agreement.

On March 13, Judge J.P. Stadtmueller of the U.S. District Court for the Eastern District of Wisconsin agreed with the insured that it has asserted a claim for relief beyond the $1.6 million in coverage subject to arbitration.

In 2013, a fire severely damaged the Milwaukee County Courthouse. The courthouse …