3rd Circuit Says Fraud Allegations Against Allied Underwriting Must Be Arbitrated

The 3rd U.S. Circuit Court of Appeals last week ruled that a New Jersey employer who was allegedly misled into signing up for a risk pool agreement has to seek a remedy through an arbitral forum for its fraud claim against the Applied Underwriters Captive Risk Assurance Co. Applied Underwriters has been hit with multiple similar lawsuits in the past two years, but it has been largely successful in channeling the complaints by its disgruntled customers — such as South Jersey Sanitation — into arbitration. South Jersey is a trash-hauling business with more than ...