The battle between whether reinsurance disputes should litigated or arbitrated (or mediated) continues even though most reinsurance disputes are subject to arbitration provisions in the reinsurance contracts. There are arguments on both sides, of course, and no one can argue that arbitration has not become more like litigation.
While I favor arbitration and mediation (for reinsurance and other commercial disputes), periodically a case comes along (and there are many) that looks like it is campaigning to be the poster case for why arbitration and mediation is more efficient than litigation. I recently posted a blog about a case that arose 10 years after a reinsurance transaction where the court refused to dismiss the complaint. https://wordpress.com/post/schifferlc.com/1770. Well, that case now has another decision, somewhat along the same lines.
The collateral litigation costs are mounting for both parties while the parties have not come close to getting to the substantive issues. These types of motions (while not unheard of) are frowned upon in arbitration, where the goal is to get to a hearing as soon as practicable to resolve the dispute.
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