8th Cir. Says Arbitrator Must Determine Arbitrability of Insured’s Crossclaim in Interpleader Action

MINNEAPOLIS — A federal appellate panel has ruled that an arbitrator must determine the arbitrability of an insured’s crossclaim against SUNZ Insurance Co. in an interpleader action involving excess deductible collateral held by SUNZ in a workers’ compensation program.

On June 6, the 8th Circuit U.S. Court of Appeals panel explained that the crossclaim is challenging the validity of the contract containing the arbitration clause; therefore, the challenge must be considered by an arbitrator, not a court.

In 2015, Benchmark Insurance Co. began administering an insurance program for large- deductible workers’ compensation policies. Benchmark retained SUNZ Insurance Solutions (SIS) as …