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McLarens Young Int'l Inc. v. American Safety Cas. Ins. Co.

The insertion of another party into the arbitration proceedings did not change the nature of proceedings such that the dispute was no longer between the two parties to underlying contract and thus outside the scope of the arbitration provision.

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Appellant McLarens Young International, Inc. McLarens appeals from the trial court’s order denying its motion to stay arbitration and granting the motion to compel arbitration filed by appellees American Safety Casualty Insurance Company ASCIC and Excalibur Reinsurance Corporation Excalibur. As more fully set forth below, we now affirm.

The underlying facts are essentially undisputed. In September 2005, McLarens and ASCIC entered into a Claims Handling Agreement CHA pursuant to which McLarens provided claims management and adjustment services for ASCIC in connection with claims or losses relating to policies of insurance ASCIC issued under a Lawyers Professional Liability Program underwritten by Professional Coverage Managers, Inc. the PCM Program. McLarens’ duties under the CHA included the supervision of counsel retained to handle any litigation relating to claims submitted under ASCIC’s policies, and in return, ASCIC had a duty to cooperate with respect to the claims submitted for handling under the CHA. Pertinent here, Article 12.1 of the CHA provided that all matters in dispute solely between ASCIC and McLarens in relation to this Agreement, and whether arising during or after the period of this Agreement, shall be referred for arbitration in the manner further set out therein Arbitration Provision.

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