Reinsurance Dispute Involving Accounting Malpractice Removed to N.J. Federal Court

CAMDEN, N.J. — A group of foreign reinsurers have removed to New Jersey federal court a lawsuit filed by a policyholder demanding reinsurance proceeds for the settlement of an underlying malpractice action brought against an accounting firm and its insurer.

In a July 22 notice filed in the U.S. District Court for the District of New Jersey, the reinsurers argue that removal is proper under the Federal Arbitration Act because the arbitration provision in the reinsurance agreements at issue is governed by the United Nations Convention on the Recognition and Enforcement of Foreign Arbitral Awards.

“Chapter 2 of the …