SUNZ, Insured Reach Settlement in $20.5 Million Dispute Over Collateral Holdings

MINNEAPOLIS — Citing a settlement between SUNZ Insurance Co. and an insured in a dispute involving $20.5 million in excess deductible collateral in a workers’ compensation program, the 8th Circuit U.S. Court of Appeals has dismissed an appeal of a Minnesota federal judge’s denial of SUNZ’s motion to compel arbitration, as to that insured.

In a Jan. 24 order, the appellate court remanded the claims between SUNZ and Century Employer Organization LLC to the U.S. District Court for the District of Minnesota.

The order was issued in response to a Jan. 19 letter in which counsel for SUNZ and …