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The Travelers Indemnity Co. v. Grapeland Independent School District

Court: Tx 12-Tyler  05/10/2023  Court Affirms Denial of Arbitration Demand By Reinsurer

The appellate court held that the district court had properly refused to dismiss or stay the lawsuit pending arbitration because there was no arbitration clause in the actual insurance policy and the reinsurer cannot rely on "direct benefits" estoppel to force the insured to arbitration based on the arbitration clause in the reinsurance contract because the insured's claims are based on the insurance policy and Texas law not the reinsurance contract.

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