Minn. Federal Judge Stays $20.5 Million Interpleader Action Pending Appeal

MINNEAPOLIS — A Minnesota federal magistrate judge has stayed an interpleader action involving $20.5 million in excess deductible collateral held by an insurer in a workers’ compensation program pending SUNZ Insurance Co.’s appeal of the court’s refusal to compel arbitration of the claims.

In a May 12 order, Magistrate Judge Tony N. Leung of the U.S. District Court for the District of Minnesota ruled that SUNZ would be irreparably harmed if a stay were not issued because it will be deprived of the rights and benefits of the arbitration provision in the parties’ program agreement.

In 2015, Benchmark Insurance Co. …