No Sanctions In First Automotive Arbitration Dispute

Law360, New York (June 17, 2010, 8:10 PM EDT) -- A judge has denied a bid by Allstate subsidiaries First Colonial Insurance Co. and Northbrook Indemnity Co. for sanctions against First Automotive Service Corp. NM for attempting to vacate an unfavorable arbitration award in a reinsurance dispute, while confirming the arbitration award itself.

Judge Timothy J. Corrigan approved the modified arbitration award in favor of Northbrook of roughly $500,000 in attorneys' fees in the U.S. District Court for the Middle District of Florida on Wednesday.

The record confirms that both parties proceeded in accordance with the...
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