Reinsurer Not Required to Arbitrate Claim Dispute With Benefit Plan, Judge Says

RENO, Nev. — A Nevada federal magistrate judge has recommended denial of an employee benefit plan’s motion to compel arbitration of its claim dispute with a reinsurer, ruling that the reinsurer, as a non-signatory, is not required to arbitrate.

In a Jan. 21 report and recommendation, Magistrate Judge Elayna Youchah of the U.S. District Court for the District of Nevada rejected the plan’s argument that the reinsurer is a third-party beneficiary to the agreement, finding there was no “clear promissory intent to benefit” the reinsurer.

Through an arrangement between the Kenai Drilling Limited Employee Benefit Plan’s third-party administrator and Connecticut …