Whether a motion to compel arbitration will be granted depends
on, among other things, whether the arbitration provision is broad
or narrow and whether the dispute falls within the scope of the
arbitration provision. In a recent case, a California federal court
construed unique language in an arbitration provision in a
reinsurance agreement, granted the motion to compel arbitration and
stayed the litigation.
In Nationwide Agribusiness Insurance Co. v. The Hartford
Steam Boiler Inspection and Insurance Co., No. CV19-00531
JAK-KK, (C.D. Calf. Oct. 18, 2019 (Not Reported), the cedent issued
an agribusiness policy to an organic date farm that included
equipment breakdown coverage. The policy was reinsured. A power
outage resulted in a shutdown of the policyholder’s
refrigeration system, which caused extensive damage and loss of
business. The cedent paid a substantial claim and sought recovery
under the reinsurance agreement. The reinsurer refused to pay. The
cedent
