Insurer Asks High Court To Rule On Arbitration Clause

Law360, New York (September 29, 2010, 12:58 PM EDT) -- American Home Assurance Co. has asked the U.S. Supreme Court to define the scope of the phrase “arising out of” in arbitration clauses, an issue that has sharply divided the circuits in deciding whether contract disputes must be arbitrated.

The insurer filed its petition for a writ of certiorari Monday, seeking the high court's final resolution of a long-running breach of contract suit brought against American Home by Vivendi SA subsidiary UMG Recordings Inc. in 2007.

While other circuits, including the Second, Third, Sixth, Seventh and...
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