Assignment Agreement Did Not Confer Power to Demand Arbitration, 7th Cir. Affirms

CHICAGO — An agreement assigning certain collection rights to Pine Top Receivables of Illinois does not give it the power to demand arbitration of a dispute over reinsurance proceeds allegedly owed by Banco de Seguros del Estado, a federal appeals court has affirmed.

In a Nov. 7 opinion, the 7th Circuit U.S. Court of Appeals explained that the right to arbitrate is reciprocal, and the agreement could not transfer a one-way right to demand arbitration without imposing any reciprocal obligation on Pine Top. The appellate court also affirmed that Banco is shielded by the Foreign Sovereign Immunities Act from having …