State of Wisconsin Local Govt. Property Ins. Fund v. Lexington Ins. Co.

Dist. Ct. did not err in denying defendant-excess insurance company’s motion to include it in pending arbitration between plaintiff-insurance company and third-party insurance company regarding coverage dispute for machinery and equipment that was destroyed in fire of insured’s building. Although Joint Loss Agreement (JLA) containing arbitration provision that was included in plaintiff’s policy was also incorporated in defendant’s policy, terms of JLA required that defendant receive request for payment of disputed claim by insured and payment of disputed claim by defendant to trigger any agreement to arbitrate disputed claim. As such, while plaintiff and third-party insurance company satisfied said provisions of JLA to arbitrate disputed claim regarding which insurance company should pay disputed claim, said agreement to arbitrate did not include defendant.