ARBITRATION DENIED IN MORTGAGE LIFE INSURANCE DISPUTE WHERE NEITHER NOTE NOR POLICY REFERENCED ARBITRATION AGREEMENT
A court refused to compel arbitration in a dispute surrounding the cancellation of and failure to pay life insurance benefits under a debtor group life insurance policy. The relevant note and insurance policy did not contain an arbitration agreement. The defendants, however, attempted to compel arbitration based on arbitration agreements formed in connection with three other loans made to the plaintiff. The court was not persuaded as none of the three transactions was directly connected with the mortgage and life insurance policy that formed the basis of the plaintiff’s claims. The arbitration agreements did not reference the relevant note and lender, but instead referenced the other notes and lenders not at issue in the dispute. The court therefore concluded that there was “no evidence that Plaintiff agreed to arbitrate disputes arising out of the” mortgage, note, or insurance policy. Bucher v. American Health & Life Insurance Co., Case No. 2:14-cv-659 (USDC W.D. Pa. Aug. 28, 2014).
This post written by Michael Wolgin.
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