Non-Signatory’s Claims Not Subject to Reinsurance Contract’s Arbitration Clause, Texas Appellate Court Rules

TYLER, Texas — A Texas appellate court has upheld a ruling refusing to dismiss or stay The Travelers Indemnity Co.’s claims against a non-signatory school district in favor of arbitration in a hail and windstorm coverage dispute.

In a May 10 opinion, the 12th Texas Court of Appeals found Travelers failed to show that the arbitration provision in the reinsurance contract is valid and enforceable as against the school district.

Grapeland Independent School District obtained property insurance coverage from Texas Rural Education Association Risk Management Cooperative (TREA) for the period of Sept. 1, 2018, through Sept. 1, 2019. The policy …