Commutation Extinguished CX Re’s Right to Arbitrate Reinsurance Dispute, Trenwick Contends in Pre-Hearing Brief

HARTFORD, Conn. — In a pre-hearing brief, Trenwick America Reinsurance Corp. is urging a Connecticut federal court to restrain CX Reinsurance Company Ltd. from proceeding with a reinsurance arbitration, arguing that a February 2013 commutation extinguished any arbitration right CX Re may have had.

In its Jan. 9 brief filed in the U.S. District Court for the District of Connecticut, Trenwick contends that the commutation extinguished the reinsurance agreements and the arbitration clause contained within those agreements. CX Re can have no right to arbitrate disputes with Trenwick because there is nothing from which such a right could be derived, …