Insurer Appeals Minn. Federal Judge's Refusal to Order Arbitration of Claims in Interpleader Action

MINNEAPOLIS — SUNZ Insurance Co. is appealing a Minnesota federal judge’s refusal to compel arbitration of claims and counterclaims in an interpleader action involving $20.5 million in excess deductible collateral held by an insurer in a workers’ compensation program.

According to a March 23 notice of appeal, SUNZ is challenging a finding by Judge John R. Tunheim of the U.S. District Court for the District of Minnesota that the dispute does not fall within the scope of an arbitration clause in the parties’ agreements.

In 2015, Benchmark Insurance Co. and SUNZ Insurance Co. partnered to administer an insurance program for …