N.Y. Federal Judge Stays Reinsurance Arbitration, Orders Discovery into Timeliness

NEW YORK — A New York federal judge has stayed a reinsurance arbitration initiated by NEM RE Receivables LLC against a U.K.-based insurer, ruling that there is no evidence that an agreement to arbitrate exists between the parties.

In a Dec. 12 order, Judge Valerie Caproni of the U.S. District Court for the Southern District of New York further ruled that discovery is needed before it can be determined whether NEM RE’s claims against Catalina Worthing Insurance Ltd. are timely.

From 1973 through 1981, U.K.-based Excess Insurance Company Ltd., now Catalina, entered into several reinsurance agreements with Federated Reinsurance Co., …