Arbitrators Should Resolve Forum Selection Conflict, Judge Rules

BOSTON - A Massachusetts federal judge has dismissed Lydon Property Insurance Co.'s action seeking confirmation of an arbitration award rendered against its reinsurer. Lydon Property Insurance Co. v. Founders Insurance Company Ltd., No. 1:08-11359 (D. Mass.).

In a Nov. 24 order, Judge Richard G. Stearns of the U.S. District Court for the District of Massachusetts ruled that arbitrators, not the court, should decide whether the confirmation proceedings should be held in either Massachusetts or Missouri courts.

Founders Insurance Company Ltd. reinsured certain default protection insurance policies issued by Lyndon pursuant to the "Centrix Portfolio Management Program." The reinsurance contract, …