New Jersey Physicians United Reciprocal Exchange (“NJ Pure”) filed a complaint claiming that its reinsurer breached a 2007 reinsurance contract under which it owed plaintiff some $2.3 million, having allegedly improperly offset an amount owed by NJ Pure under the parties’ 2004 contract. The reinsurer moved to dismiss/stay in favor of arbitration. NJ Pure resisted, citing the forum selection clause as evidence that the parties did not intend for arbitration to be mandatory. The court disagreed, pointing out that such a reading would eviscerate the arbitration clause, and that the forum selection clause was intended for situations involving enforcement or challenge to the arbitration award. Finding the suit within the scope of the arbitration clause, the court compelled the parties to arbitrate. New Jersey Physicians United Reciprocal Exchange v. Ace Underwriting Agencies, Ltd., No. 12-04397 (USDC D.N.J. April 11, 2013).
This post written by John Pitblado.