Arbitration Clause in Worker’s Comp Reinsurance Contract Unenforceable, Tenn. Federal Judge Rules

NASHVILLE, Tenn. — An arbitration clause in a workers’ compensation reinsurance contract that called for an offshore segregated protected cell arrangement is unenforceable under Nebraska law, a Tennessee federal judge has ruled, explaining that the contract “concerned” or “related” to certain workers’ compensation policies.

On Jan. 23, Chief Judge J. Daniel Breen of the U.S. District Court for the Western District of Tennessee upheld a magistrate judge’s denial of a motion to compel arbitration asserted by Applied Underwriters Captive Risk Assurance Co.

In September 2008, Milan Express Co. sought workers’ compensation coverage and met with intermediary Brown & Brown, which …