Pine Top Receivables of Illinois, LLC v. Banco de Seguros del Estado

In action to compel defendant-reinsurance company owned by Uruguay to arbitrate action by plaintiff-insurance company alleging that defendant owed plaintiff $2,352,464.08 under reinsurance contracts, Dist. Ct. did not err in denying plaintiff’s motion to strike defendant’s answer to complaint due to defendant’s failure to post security under Illinois Unauthorized Insurers Process (UIPA) to cover instant claim. Plaintiff conceded that Foreign Sovereign Immunities Act (FSIA) generally applied to defendant, and FSIA barred application of UIPA to defendant since security required by UIPA qualified as “attachment” under FSIA. Moreover, Dist. Ct. did not err in finding that defendant was not obligated to arbitrate parties’ dispute, since contract in which plaintiff purchased instant claim did not include right to demand arbitration.