Montana Counties Fight Arbitrating False Imprisonment Deal

Law360 (May 7, 2020, 4:53 PM EDT) -- An association of Montana counties told the state's federal court that Lloyd's of London underwriters can't force them to arbitrate a dispute over the coverage of a $4.45 million settlement with a man falsely imprisoned on murder and kidnapping charges.

The Montana Association of Counties Property and Casualty Trusts argued Tuesday that the underwriters must resolve the dispute in court given their refusal to pay the $2.26 million the county association says it's owed under a reinsurance agreement.

"While the policy contains a general arbitration clause, the policy also contains a more specific clause whereby underwriters consent to a judicial forum...

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