Plaintiff Urges Remand of Complaint Against Foreign Reinsurers to N.J. State Court

NEWARK, N.J. — A policyholder has asked a New Jersey federal judge to remand to state court its lawsuit against group of foreign reinsurers demanding reinsurance proceeds for the settlement of an underlying malpractice action brought against an accounting firm and its insurer.

In an Aug. 5 brief filed before Judge Claire C. Cecchi of the U.S. District Court for the District of New Jersey, the estate of Carl L. Austin argues that federal jurisdiction is lacking because the reinsurers have not established the existence or scope of an applicable arbitration provision.

“Defendants removed this action after the Superior Court …