Reinsurer Seeks Stay of Discovery in $1 Million Action Pending Resolution of Dismissal Motion

DETROIT — American National Insurance Co. has moved to stay discovery in a lawsuit accusing it of breaching a reinsurance contract by refusing to pay a nearly $1 million health insurance claim, pending a Michigan federal judge’s resolution of its motion to dismiss the action.

In a May 14 motion filed in the U.S. District Court for the Eastern District of Michigan, American National argues that it would be prejudiced if the stay were denied because there is a strong presumption in favor of arbitration of the dispute.

“If Defendant prevails in compelling arbitration, then this would protect it from …