Claims Against Reinsurer Stayed in Sexual Abuse Coverage Action

SEATTLE — A Washington federal judge has stayed a risk management pool’s claims for declaratory judgment and breach of contract against American Re-Insurance in a dispute over reinsurance coverage for sexual abuse claims levied against a school district, pending the outcome of an arbitration against another reinsurer.

In a Jan. 17 order, Judge Lauren King of the U.S. District Court for the Western District of Washington ruled that a stay is appropriate because it would be inefficient to litigate the claims against American Re in court while the arbitrator resolved them against Sompo International Reinsurance, and that could also lead …