Arbitration, Service-Of-Suit Clauses Are Harmonious, Judge Rules

LOS ANGELES - An arbitration clause does not conflict with a service-of-suit clause in a series of insurance policies, a California federal judge has ruled in ordering the parties to submit their coverage dispute to arbitration. NS Holdings LLC Inc., et al. v. American International Group Inc., et al., No. 10-1132 (C.D. Calif.).

Judge David O. Carter of the U.S. District Court for the Central District of California ruled that the policies' arbitration provision clearly calls for arbitration of disputes arising under the policies and the service-of-suit clause requires the insurers to submit to the jurisdiction of any federal court …