N.Y. Federal Judge Stays Captive Reinsurance Dispute Pending Arbitration

NEW YORK — A New York federal judge has stayed an action filed by Steadfast Insurance Co. against Barton Marlow Inc. and its captive reinsurer, ruling that the dispute is within the scope of the reinsurance agreement’s valid arbitration provision.

Judge William H. Pauley III of the U.S. District Court for the Southern District of New York found the claims against the captive reinsurer implicate the parties’ rights and obligations under the reinsurance agreement.

Steadfast insured Barton Malow Co. under an indemnity and liability policy. In September 2011, Barton Marlow tendered a claim to Steadfast for $25 million, the …