Pine Top May Not Compel Banco to Arbitrate $2 Million Reinsurance Dispute, Ill. Judge Rules

CHICAGO — An Illinois federal judge has dismissed Pine Top Receivables of Illinois's motion to compel Banco de Seguros del Estado to arbitrate a $2 million reinsurance dispute, finding the agreement assigning certain collection rights to PTRIL did not give it the power to compel arbitration.

On Feb. 5, Judge Marvin E. Aspen of the U.S. District Court for the Northern District of Illinois concluded the plain language of the agreement indicates the parties did not intend for PTRIL to assume all of Pine Top Insurance Co.’s rights and duties under the reinsurance treaties at issue.

Between 1977 and 1984, …