REINSURED ESTOPPED TO AVOID ARBITRATION CLAUSE
Pronational Insurance Company brought suit against AXA Liabilities Managers, Inc. (AXA’s claims-handling subsidiary), alleging several common law claims in connection with AXA Re’s denial of coverage for a claim made by Pronational under a reinsurance contract. AXA LM moved to compel arbitration under the reinsurance contract, to which Pronational and AXA Re only were signatories. Pronational objected on the basis that AXA LM was not a signatory. The Court granted the motion to compel arbitration, finding that Pronational was equitably estopped to attempt to avoid the arbitration clause in the contract under which the subject claims were made. The reasoning for this decision is contained in a Magistrate Judge’s Report and Recommendation, which the district judge adopted in a very short Order. Pronational Ins. Co. v. AXA Liabilities Managers, Inc., Case No. 08-2022 (USDC N.D. Ala. January 28, 2010).
This post written by John Pitblado.
