Court Resolves Service Issue and Stays US Action Pending Prior-Filed Canadian Action
Canada Life Assurance and Converium Ruckversicherung were parties to a reinsurance agreement that experienced losses as a result of the September 11 attack on the World Trade Centers. A dispute led to an arbitration in Canada and a lawsuit in Canada to vacate the award. Due to a concern as to whether the Canadian Court had jurisdiction, Canada Life filed an action in United States District Court in New Jersey, purporting to make service on Converium’s US counsel in the arbitration. The district court found the service insufficient and quashed it, but declined to dismiss, ordering Canada Life to effectuate service in compliance with the Federal Rules of Civil Procedure rather than the Federal Arbitration Act, which the Court held did not apply to service of a motion to vacate upon a non-US corporation. Applying principles of international comity, the Court stayed the action pending the resolution of the prior-filed Canadian lawsuit. Canada Life Assur. Co. v. Converium Ruckversicherung AG, Case No. 06-3800 (USDC D.N.J. June 13, 2007).
