Second Time Is No Charm: Motion to Compel Arbitration Denied

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Recently, I wrote about a Texas intermediate appellate court’s affirmation of the denial of a reinsurer’s motion to dismiss a claim brought by an insured school district. Travelers Indem. Co. v. Grapeland Indep. Sch. Dist., No. 12-22-00311-CV, 2023 WL 3371072, at *3 (Tex. App. May 10, 2023). The main legal issue in the case was whether the concept of direct benefit estoppel applied. Well, the reinsurer tried again in Connecticut federal court.

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Non-Signatory? No Arbitration

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It is not the usual case where a reinsurer seeks to compel a policyholder to resolve a dispute in arbitration based on the reinsurance contract’s arbitration provision, but sometimes that makes the most sense. Whether a court will allow it depends on the facts. In a case decided earlier this year, a state intermediate appellate court affirmed the motion court’s denial of the reinsurer’s motion to dismiss or stay in favor of arbitration.

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