Federal Judge Orders Arbitration of Collateral Dispute
October 6, 2009
NEW YORK - A New York federal judge has ordered arbitration of a dispute over a settlement involving shareholders' obligations to provide additional collateral for a reinsurance contract issued by Alternative Re Limited. TPG Group v. Alternative Re Holdings Ltd., No. 08-111244 (S.D. N.Y.).
U.S. District Judge Sidney H. Stein ruled that the broadly-worded arbitration clauses in the shareholder agreements at issue encompass the dispute and override the forum selection clause in the settlement agreement.
Between 2001 and 2003, Arch Insurance Co. purchased workers compensation coverage from National Benefits Group. The policies were reinsured by Arch's subsidiary, Alternative Re. In …