But, YAC countered by saying the insurers have waived arbitration pursuant to the “service of suit” clauses contained in the separate insurance contracts.
“The policies have ‘service of suit’ clauses that have the effect of amending endorsements to the policies, which have the same effect of the insurers waiving arbitration” YAC said in its opposition brief. “In the service of suit clauses, the insurers agreed that they would submit to a jurisdiction at the request of the insured in the event that the insurers failed to pay a claim.”
The insurer’s motion to compel arbitration is currently under court submission.
