Mich. Federal Judge Dismisses Reinsurer’s Action, Sends Dispute to Arbitration

GRAND RAPIDS, Mich. — A Michigan federal judge has dismissed an action in which a reinsurer accuses a cedent of improperly settling a healthcare provider's claims against two employee benefit plans, ruling that “dismissal is proper where all claims are referred to arbitration.”

In a Feb. 10 order, Judge Paul L. Maloney of the U.S. District Court for the Western District of Michigan rejected Alliance Health & Life Insurance Co. (AHL)’s argument that the case should be stayed, explaining that the court “need not retain jurisdiction to decide hypothetical discovery disputes.”

“Moreover, any discovery disputes must be resolved by the …