Breach of Contract Action Against Reinsurer Stayed Pending Non-Binding Arbitration

ORLANDO, Fla. — A Florida federal judge has stayed a breach of contract action filed by a governmental risk management program against its reinsurer, noting that the parties contractually agreed to submit any dispute to non-binding mediation before filing suit.

In a Sept. 28 order, Judge Gregory A. Presnell of the U.S. District Court for the Middle District of Florida explained that while the Federal Arbitration Act does not require the case to be stayed pending non-binding arbitration, the parties should fulfill their agreed-upon condition precedent before litigating.

Public Risk Management of Florida (PRM) is a self-insured governmental risk …