SUPREME COURT OF THE STATE OF NEW YORK COUNTY OF NEW YORK: COMMERCIAL DIVISION
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PINNACLE ATLANTIC REINSURANCE LTD.,
Petitioner/Plaintiff,
— against —
QUORUM CASUALTY & SURETY COMPANY and QUORUM INSURANCE HOLDINGS CORP.,
Respondents/Defendants.
Index No.: ___ (To be assigned upon filing)
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Prepared by: Jeffrey Park, Esq. Calderwood & Harkness LLP One Liberty Plaza, 55th Floor New York, NY 10006 Tel: (212) 558-4000
Fax: (212) 558-3588
Matter No.: 1025-00005
SUPREME COURT OF THE STATE OF NEW YORK COUNTY OF NEW YORK: COMMERCIAL DIVISION
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PINNACLE ATLANTIC REINSURANCE LTD.,
Petitioner/Plaintiff,
— against —
QUORUM CASUALTY & SURETY COMPANY and QUORUM INSURANCE HOLDINGS CORP.,
Respondents/Defendants.
Index No.: ___
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NOTICE OF MOTION TO COMPEL ARBITRATION AND STAY LITIGATION
PLEASE TAKE NOTICE that upon the annexed affirmation of Jeffrey Park, Esq., dated __, 2026, together with the exhibits annexed thereto; the affidavit of Tobias Engström, Senior Vice President, Reinsurance & Capital Markets, Quorum Insurance Holdings Corp., sworn to __, 2026; the affidavit of Diana Kessler-Hoff, Vice President, Claims & Reinsurance Recoveries, Quorum Casualty & Surety Company, sworn to __, 2026; the accompanying Memorandum of Law in Support of Respondents/Defendants' Motion to Compel Arbitration and Stay Litigation; and all exhibits annexed to the foregoing submissions, Respondents/Defendants Quorum Casualty & Surety Company ("QC&S") and Quorum Insurance Holdings Corp. ("QIH" and, together with QC&S, "Quorum") will move this Court, at the courthouse located at 60 Centre Street, New York, New York 10007, before the Commercial Division, Supreme Court, New York County, on __, 2026, at __ __.m., or as soon thereafter as counsel may be heard, for an order:
1. Pursuant to Section 7503(a) of the New York Civil Practice Law and Rules ("CPLR") and Section 4 of the Federal Arbitration Act, 9 U.S.C. § 4, compelling Petitioner/Plaintiff Pinnacle Atlantic Reinsurance Ltd. ("Pinnacle Atlantic") to submit all claims and disputes arising under or relating to the Aggregate Excess-of-Loss Reinsurance Treaty No. PA-QCS-2019-EXL-0044, effective July 1, 2019, as extended through June 30, 2026 (the "Treaty"), to binding arbitration before a three-member arbitration panel seated in New York, New York, pursuant to the rules of ARIAS-U.S. (the AIDA Reinsurance and Insurance Arbitration Society—U.S.), as provided in Article 22 of the Treaty;
2. Pursuant to CPLR § 7503(a) and 9 U.S.C. § 3, staying all proceedings in this action, including but not limited to all discovery, pretrial motions, and other litigation activity, pending the completion of the arbitration described above;
3. Awarding Quorum its costs and disbursements incurred in connection with this motion, including reasonable attorneys' fees to the extent recoverable under applicable law; and
4. Granting such other and further relief as this Court deems just and proper.
This motion is made on the grounds that the Treaty contains a broad, mandatory arbitration clause (Article 22) requiring the parties to resolve "any dispute arising out of or relating to the interpretation, performance, or breach of this Treaty" through binding arbitration under ARIAS-U.S. Rules before a three-member panel in New York, New York. All of the claims asserted in Pinnacle Atlantic's February 14, 2026 pre-suit demand letter fall squarely within the scope of that arbitration clause, as each of the four grounds articulated therein involves the interpretation, performance, or alleged breach of specific provisions of the Treaty (Articles 3, 5, 7, and 11). The strong presumption in favor of arbitrability under both New York law and the Federal Arbitration Act requires that this Court compel arbitration and stay the instant litigation.
Answering papers, if any, shall be served and filed in accordance with the rules of the Commercial Division and any scheduling order entered by this Court.
Dated: New York, New York __, 2026
Respectfully submitted,
CALDERWOOD & HARKNESS LLP
CALDERWOOD & HARKNESS LLP
By: ________
Jeffrey Park, Esq. One Liberty Plaza, 55th Floor New York, NY 10006 Telephone: (212) 558-4000 Facsimile: (212) 558-3588
Email: jpark@calderwoodharkness.com
Attorneys for Respondents/Defendants Quorum Casualty & Surety Company and Quorum Insurance Holdings Corp.
TO:
Hargrove, Fitch & Calloway LLP 51 West 52nd Street, 40th Floor New York, NY 10019 Telephone: (212) 906-1200 Facsimile: (212) 906-1201
Attention: Nathaniel R. Calloway III, Esq. and Priya Subramanian, Esq.
Attorneys for Petitioner/Plaintiff Pinnacle Atlantic Reinsurance Ltd.
SUPREME COURT OF THE STATE OF NEW YORK COUNTY OF NEW YORK: COMMERCIAL DIVISION
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PINNACLE ATLANTIC REINSURANCE LTD.,
Petitioner/Plaintiff,
— against —
QUORUM CASUALTY & SURETY COMPANY and QUORUM INSURANCE HOLDINGS CORP.,
Respondents/Defendants.
Index No.: ___
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AFFIRMATION OF JEFFREY PARK IN SUPPORT OF MOTION TO COMPEL ARBITRATION AND STAY LITIGATION
JEFFREY PARK, an attorney duly admitted to practice law before the courts of the State of New York, hereby affirms the following under the penalties of perjury pursuant to Section 2106 of the New York Civil Practice Law and Rules:
I. PRELIMINARY STATEMENT
1. I am a Senior Associate (seventh year) in the Litigation Department of Calderwood & Harkness LLP ("C&H"), counsel for Respondents/Defendants Quorum Casualty & Surety Company ("QC&S") and Quorum Insurance Holdings Corp. ("QIH" and, together with QC&S, "Quorum") in this matter. I submit this affirmation in support of Quorum's motion to compel arbitration and stay all proceedings in this action.
2. I am personally familiar with the facts and circumstances set forth herein based upon my review of the relevant documents, including the reinsurance treaty at issue, the correspondence between the parties, and discussions with representatives of QC&S and QIH. Except as otherwise indicated, the facts stated herein are within my personal knowledge or are based on documents that are attached hereto as exhibits and incorporated by reference.
3. Quorum respectfully submits that this motion should be granted because: (a) the parties entered into a valid and binding arbitration agreement contained in Article 22 of the Treaty; (b) each and every claim asserted by Pinnacle Atlantic in its pre-suit demand falls squarely within the broad scope of that arbitration clause; and (c) Pinnacle Atlantic has failed and refused to participate in the contractually mandated arbitration process notwithstanding Quorum's formal demand.
II. BACKGROUND OF THE PARTIES
4. Quorum Casualty & Surety Company. QC&S is a New York-domiciled stock property and casualty insurance company, licensed to write insurance in all fifty states, the District of Columbia, and the U.S. Virgin Islands. QC&S maintains its principal office at 200 Constitution Plaza, Suite 3200, Hartford, Connecticut 06103. QC&S is assigned National Association of Insurance Commissioners ("NAIC") number 24891. As of December 31, 2025, QC&S reported statutory surplus of approximately $1.42 billion on its Annual Statement filed with the New York State Department of Financial Services. QC&S holds a financial strength rating of A (Excellent) with a Stable outlook from A.M. Ridgeway Rating Services, reflecting its strong capitalization, favorable operating performance, and diversified book of business.
5. Quorum Insurance Holdings Corp. QIH is a Delaware corporation and the publicly traded parent holding company of QC&S. QIH's common stock is listed on the Nasdaq Stock Market under the ticker symbol "QIHC." QIH maintains its headquarters at 200 Constitution Plaza, Suite 3400, Hartford, Connecticut 06103. As of February 28, 2026, QIH had an approximate market capitalization of $6.7 billion. QIH does not directly write or assume insurance or reinsurance, but is named as a party to this motion because it is identified in Pinnacle Atlantic's pre-suit demand letter and may be named as a defendant in any action commenced by Pinnacle Atlantic.
6. Pinnacle Atlantic Reinsurance Ltd. Pinnacle Atlantic is a Bermuda-domiciled Class 4 insurer registered with the Bermuda Monetary Authority under BMA Registration No. BMA-4R-2008-0331. Pinnacle Atlantic maintains its registered office at Clarendon House, 14 Church Street, Hamilton HM 11, Bermuda. Pinnacle Atlantic also maintains a U.S. office at 1285 Avenue of the Americas, 28th Floor, New York, New York 10019. Pinnacle Atlantic is a wholly-owned subsidiary of Pinnacle Atlantic Group Holdings Ltd., a Bermuda exempted company. Under the Treaty, Pinnacle Atlantic served as the reinsurer, assuming aggregate excess-of-loss reinsurance on designated casualty lines written by QC&S.
III. THE TREATY
7. QC&S, as cedent, and Pinnacle Atlantic, as reinsurer, entered into Aggregate Excess-of-Loss Reinsurance Treaty No. PA-QCS-2019-EXL-0044 (the "Treaty"), effective July 1, 2019. A true and correct copy of the Treaty, together with all endorsements and amendments thereto, is attached hereto as Exhibit A.
8. The Treaty provides aggregate excess-of-loss reinsurance coverage on QC&S's casualty lines portfolio, specifically covering commercial general liability, excess and umbrella liability, and professional liability policies issued or renewed by QC&S during the applicable treaty year.
9. The original term of the Treaty was five years, commencing on July 1, 2019 and expiring on June 30, 2024. The Treaty contained an automatic extension provision permitting annual extensions unless either party provided written notice of non-renewal at least nine months before the end of the then-current term. Pursuant to that provision, the Treaty was extended through June 30, 2025 and subsequently through June 30, 2026 via two successive automatic one-year extensions.
10. On October 1, 2025, Pinnacle Atlantic served a notice of non-renewal with respect to the current extension period, indicating that the Treaty would expire and not be renewed effective June 30, 2026. A true and correct copy of the non-renewal notice is attached hereto as Exhibit F.
11. The Treaty's material financial terms include: (a) a retention of $120 million per treaty year in aggregate net incurred losses; (b) a cession limit of $200 million per treaty year, covering losses from $120 million to $320 million; (c) a provisional premium rate of 42% of ceded earned premium, subject to a slide-scale adjustment mechanism with a minimum rate of 35% and a maximum rate of 52%; and (d) a deposit premium arrangement with quarterly adjustments.
12. Article 9 of the Treaty identifies Broadreach Intermediaries Inc. ("Broadreach") as the reinsurance intermediary broker through which the Treaty was placed and through which billings, notices, and premium payments were to flow in the ordinary course. Broadreach's role as intermediary is relevant to the underlying dispute, as it participated in the collection and transmission of certain loss and premium data at issue.
13. Article 16 of the Treaty provides that the Treaty shall be governed by and construed in accordance with the laws of the State of New York, without regard to its conflicts of law principles. The choice-of-law provision reinforces the parties' expectation that New York law would govern all aspects of their relationship under the Treaty, including the interpretation and enforcement of the arbitration clause.
IV. THE ARBITRATION CLAUSE — ARTICLE 22
14. Article 22 of the Treaty, captioned "Arbitration," sets forth the parties' agreement to resolve disputes through binding arbitration. The full text of Article 22 provides as follows:
"22.1 Any dispute arising out of or relating to the interpretation, performance, or breach of this Treaty, including the formation, scope, validity, or applicability of this agreement to arbitrate, shall be resolved by binding arbitration in New York, New York, administered under the Rules for the Resolution of U.S. Insurance and Reinsurance Disputes promulgated by ARIAS-U.S. (the 'ARIAS-U.S. Rules'), as in effect at the time the arbitration is commenced.
22.2 The arbitration shall be conducted before a panel of three arbitrators, each of whom shall be a current or former officer of an insurance or reinsurance company, or an underwriter at Lloyd's. Each party shall appoint one arbitrator within thirty (30) days of the receipt of a written demand for arbitration. The two party-appointed arbitrators shall select a third arbitrator, who shall serve as the umpire of the panel, within thirty (30) days of the appointment of the second arbitrator. If the two party-appointed arbitrators are unable to agree upon an umpire within such thirty (30) day period, either party may request ARIAS-U.S. to appoint the umpire in accordance with its procedures.
22.3 The arbitration panel shall have the authority to determine issues of arbitrability, and shall have broad discretion to fashion appropriate relief, including but not limited to the authority to award compensatory damages, contract damages, interest, and costs. The panel shall not have the authority to award punitive, exemplary, or treble damages.
22.4 The arbitration panel shall base its decision on the terms and conditions of this Treaty, as well as the customs and practices of the insurance and reinsurance industry, with a view to effecting the general purposes of this Treaty. The panel shall issue a written reasoned award within sixty (60) days of the conclusion of the hearing.
22.5 Each party shall bear the expense of its own party-appointed arbitrator and the costs of the umpire shall be shared equally. Each party shall bear its own attorneys' fees and costs of representation, unless the panel determines that a party has acted in bad faith, in which event the panel may award attorneys' fees and costs to the prevailing party.
22.6 Any arbitration award rendered hereunder shall be final and binding upon the parties and judgment may be entered upon such award in any court having jurisdiction thereof."
15. As the foregoing makes clear, Article 22 employs the broadest formulation of arbitral scope recognized under both New York and federal law — "any dispute arising out of or relating to the interpretation, performance, or breach of this Treaty." It is well established that such "arising out of or relating to" language creates a strong presumption in favor of arbitrability, and that doubts concerning the scope of arbitrable issues are to be resolved in favor of arbitration. See Smith Barney Shearson Inc. v. Sacharow, 91 N.Y.2d 39, 49 (1997); Louis Dreyfus Negoce S.A. v. Blystad Shipping & Trading Inc., 252 F.3d 218, 224 (2d Cir. 2001).
16. Notably, Article 22.1 also includes a delegation clause, vesting the arbitration panel with authority to "determine issues of arbitrability," including questions regarding "the formation, scope, validity, or applicability of this agreement to arbitrate." This delegation clause is an independent basis for referring this dispute to arbitration, as it commits threshold questions of arbitrability to the arbitrators themselves. See Rent-A-Center, West, Inc. v. Jackson, 561 U.S. 63, 68-70 (2010); Henry Schein, Inc. v. Archer & White Sales, Inc., 586 U.S. 63 (2019).
V. THE DISPUTE
17. The claims that Pinnacle Atlantic seeks to assert in this Court arise entirely from the Treaty and involve the interpretation, performance, and alleged breach of specific Treaty provisions. The total amount in dispute is $78,400,000 in reinsurance recoverables, plus Pinnacle Atlantic's claim for $12,600,000 in interest, for a total demand of $91,000,000.
18. As background, QC&S ceded losses to Pinnacle Atlantic under the Treaty across multiple treaty years. With respect to Treaty Year 2022 (July 1, 2022 through June 30, 2023), QC&S ceded aggregate net incurred losses of $69,700,000 in excess of the $120 million retention. With respect to Treaty Year 2023 (July 1, 2023 through June 30, 2024), QC&S ceded aggregate net incurred losses of $8,700,000 in excess of the $120 million retention. The total ceded losses across both treaty years amounted to $78,400,000.
19. Pinnacle Atlantic paid the $78,400,000 in reinsurance recoverables across seven separate billing installments between October 15, 2022 and March 29, 2024, consistent with the billing and settlement procedures set forth in the Treaty and processed through Broadreach Intermediaries Inc.
20. On December 12, 2025, Pinnacle Atlantic sent a reservation-of-rights letter to QC&S, indicating that Pinnacle Atlantic was reviewing certain aspects of the ceded loss experience under the Treaty and reserving its rights to seek recovery of amounts previously paid. A true and correct copy of the reservation-of-rights letter is attached hereto as Exhibit C.
21. On February 14, 2026, counsel for Pinnacle Atlantic, Hargrove, Fitch & Calloway LLP ("HFC"), sent a pre-suit demand letter to QC&S demanding the return of $78,400,000 in reinsurance recoverables, plus $12,600,000 in interest, for a total demand of $91,000,000. A true and correct copy of the pre-suit demand letter is attached hereto as Exhibit B.
22. The HFC demand letter asserts four grounds for Pinnacle Atlantic's claim:
(a) Late notice under Article 7 (the Meridian Docks mass tort cluster). Pinnacle Atlantic alleges that QC&S failed to provide timely notice of the Meridian Docks mass tort cluster — a series of related environmental and toxic tort claims arising from the Meridian Docks industrial complex in Newark, New Jersey — in violation of the notice requirements of Article 7 of the Treaty. Pinnacle Atlantic contends that QC&S's delay in reporting the Meridian Docks claims materially prejudiced Pinnacle Atlantic's ability to evaluate its exposure and participate in the management of the underlying claims.
(b) Misallocation of IBNR under Article 5. Pinnacle Atlantic alleges that QC&S misallocated approximately $22.3 million in incurred but not reported ("IBNR") loss reserves across treaty years, thereby inflating the ceded losses in Treaty Years 2022 and 2023 in violation of the loss allocation and reporting methodology prescribed by Article 5 of the Treaty.
(c) Failure to follow the fortunes under Article 11 (Veridian Financial Services E&O cluster settlement). Pinnacle Atlantic alleges that QC&S failed to adhere to the "follow the fortunes" doctrine as codified in Article 11 of the Treaty in connection with a $47.5 million aggregate settlement of a cluster of errors and omissions claims asserted against Veridian Financial Services, Inc. Pinnacle Atlantic contends that the Veridian settlement was not a good-faith, reasonable business judgment and that the allocation of the settlement to the Treaty was improper.
(d) Ceded earned premium underreporting under Article 3. Pinnacle Atlantic alleges that QC&S underreported ceded earned premiums by approximately $6.8 million, resulting in an underpayment of reinsurance premium and a distortion of the slide-scale adjustment calculation under Article 3 of the Treaty.
23. Each of these four grounds is, on its face, a dispute "arising out of or relating to the interpretation, performance, or breach of" the Treaty. The late notice claim implicates Article 7. The IBNR misallocation claim implicates Article 5. The follow-the-fortunes claim implicates Article 11. The premium underreporting claim implicates Article 3. There is no claim asserted in the demand letter that exists independent of the Treaty.
VI. PINNACLE ATLANTIC'S REFUSAL TO ARBITRATE
24. The HFC demand letter of February 14, 2026 contains a single sentence asserting that the Article 22 arbitration clause "is inapplicable to the specific claims raised herein." The demand letter provides no legal authority and no factual basis for this assertion. The letter does not identify any exception, carve-out, defense, or limitation that would render the broadly worded arbitration clause inapplicable to any of the four grounds asserted.
25. Upon receipt of the demand letter, I conferred with my partner, Margaret Liu, and with representatives of QC&S and QIH, including Mr. Engström and Ms. Kessler-Hoff. Following that consultation, on or about March 18, 2026, C&H sent two letters to HFC on behalf of QC&S: (a) a response letter addressing the substance of HFC's claims and QC&S's position that the claims are without merit; and (b) a formal demand to arbitrate pursuant to Article 22 of the Treaty and ARIAS-U.S. Rules, identifying QC&S's party-appointed arbitrator and requesting that Pinnacle Atlantic appoint its party-appointed arbitrator within thirty days. True and correct copies of these letters are attached hereto as Exhibit D (response letter) and Exhibit E (demand to arbitrate).
26. As of the date of this affirmation, Pinnacle Atlantic has not responded to the formal demand to arbitrate. Pinnacle Atlantic has not appointed a party-appointed arbitrator. Pinnacle Atlantic has not engaged in any aspect of the arbitration process contemplated by Article 22 and the ARIAS-U.S. Rules.
27. To the contrary, through counsel, Pinnacle Atlantic has indicated its intention to file a plenary action in this Court rather than submit its claims to arbitration. HFC communicated this intention to C&H verbally during a telephone conference on or about April 2, 2026, and confirmed the same in a letter dated April 5, 2026.
28. Quorum has made every reasonable effort to resolve this dispute without motion practice, consistent with its obligations under Commercial Division Rule 17. Quorum proposed arbitration in accordance with the parties' contractual agreement. Pinnacle Atlantic rejected that proposal and has forced Quorum to seek judicial intervention to enforce the arbitration clause.
VII. EXHIBITS.
29. The following exhibits are annexed hereto and incorporated by reference:
Exhibit A: Aggregate Excess-of-Loss Reinsurance Treaty No. PA-QCS-2019-EXL-0044, effective July 1, 2019 (with all endorsements, amendments, and automatic extension documentation)
Exhibit B: Pre-suit demand letter from Hargrove, Fitch & Calloway LLP to Quorum Casualty & Surety Company, dated February 14, 2026
Exhibit C: Reservation-of-rights letter from Pinnacle Atlantic Reinsurance Ltd. to Quorum Casualty & Surety Company, dated December 12, 2025
Exhibit D: Response letter from Calderwood & Harkness LLP to Hargrove, Fitch & Calloway LLP, dated March 18, 2026
Exhibit E: Demand to arbitrate letter from Calderwood & Harkness LLP to Hargrove, Fitch & Calloway LLP, dated March 18, 2026
Exhibit F: Non-renewal notice from Pinnacle Atlantic Reinsurance Ltd. to Quorum Casualty & Surety Company, dated October 1, 2025
VIII. CONCLUSION.
30. For the reasons set forth herein, and as more fully developed in the accompanying Memorandum of Law, Quorum respectfully requests that this Court grant the motion to compel arbitration, stay all proceedings in this action pending the completion of arbitration, and award Quorum its costs and disbursements.
Dated: New York, New York __, 2026
CALDERWOOD & HARKNESS LLP
By: ________
Jeffrey Park, Esq. One Liberty Plaza, 55th Floor New York, NY 10006 Telephone: (212) 558-4000 Facsimile: (212) 558-3588
Email: jpark@calderwoodharkness.com
Attorneys for Respondents/Defendants Quorum Casualty & Surety Company and Quorum Insurance Holdings Corp.
SUPREME COURT OF THE STATE OF NEW YORK COUNTY OF NEW YORK: COMMERCIAL DIVISION
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PINNACLE ATLANTIC REINSURANCE LTD.,
Petitioner/Plaintiff,
— against —
QUORUM CASUALTY & SURETY COMPANY and QUORUM INSURANCE HOLDINGS CORP.,
Respondents/Defendants.
Index No.: ___
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ORDER TO SHOW CAUSE
Upon reading and filing the affirmation of Jeffrey Park, Esq., of Calderwood & Harkness LLP, dated __, 2026, together with the exhibits annexed thereto; the affidavit of Tobias Engström, Senior Vice President, Reinsurance & Capital Markets, Quorum Insurance Holdings Corp., sworn to __, 2026; the affidavit of Diana Kessler-Hoff, Vice President, Claims & Reinsurance Recoveries, Quorum Casualty & Surety Company, sworn to __, 2026; the Memorandum of Law in Support of Respondents/Defendants' Motion to Compel Arbitration and Stay Litigation; and all exhibits annexed thereto; and sufficient cause appearing therefor,
IT IS HEREBY ORDERED that Petitioner/Plaintiff Pinnacle Atlantic Reinsurance Ltd., by its attorneys Hargrove, Fitch & Calloway LLP, show cause before this Court on the __ day of __, 2026, at __ .m., at the courthouse located at 60 Centre Street, New York, New York 10007, Part __, or as soon thereafter as counsel may be heard, why an order should not be entered:
1. Compelling Pinnacle Atlantic Reinsurance Ltd. to submit all claims and disputes arising under or relating to Aggregate Excess-of-Loss Reinsurance Treaty No. PA-QCS-2019-EXL-0044 to binding arbitration pursuant to Article 22 of the Treaty and the Rules for the Resolution of U.S. Insurance and Reinsurance Disputes promulgated by ARIAS-U.S., before a three-member arbitration panel seated in New York, New York;
2. Staying all proceedings in this action, including any and all discovery, pretrial motions, and other litigation activity, pending the completion of such arbitration;
3. Awarding Respondents/Defendants Quorum Casualty & Surety Company and Quorum Insurance Holdings Corp. their costs and disbursements incurred in connection with this motion; and
4. Granting such other and further relief as this Court deems just and proper.
IT IS FURTHER ORDERED that, sufficient cause appearing therefor, pending the hearing and determination of this application, all proceedings in this action are temporarily stayed.
IT IS FURTHER ORDERED that service of this Order to Show Cause and supporting papers upon Petitioner/Plaintiff Pinnacle Atlantic Reinsurance Ltd., by service upon its attorneys Hargrove, Fitch & Calloway LLP, 51 West 52nd Street, 40th Floor, New York, New York 10019, Attention: Nathaniel R. Calloway III, Esq. and Priya Subramanian, Esq., by personal delivery or overnight courier on or before __, 2026, shall be deemed good and sufficient service thereof.
IT IS FURTHER ORDERED that answering papers, if any, shall be served upon Calderwood & Harkness LLP, One Liberty Plaza, 55th Floor, New York, New York 10006, Attention: Jeffrey Park, Esq., and filed with the Court on or before __, 2026. Reply papers, if any, shall be served and filed on or before __, 2026.
Dated: __, 2026 New York, New York
________________________________________
J.S.C.
SUPREME COURT OF THE STATE OF NEW YORK COUNTY OF NEW YORK: COMMERCIAL DIVISION
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PINNACLE ATLANTIC REINSURANCE LTD.,
Petitioner/Plaintiff,
— against —
QUORUM CASUALTY & SURETY COMPANY and QUORUM INSURANCE HOLDINGS CORP.,
Respondents/Defendants.
Index No.: ___
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[PROPOSED] ORDER COMPELLING ARBITRATION AND STAYING LITIGATION
The motion of Respondents/Defendants Quorum Casualty & Surety Company ("QC&S") and Quorum Insurance Holdings Corp. ("QIH" and, together with QC&S, "Quorum"), by their attorneys Calderwood & Harkness LLP, for an order pursuant to CPLR § 7503(a) and 9 U.S.C. §§ 3-4 compelling Petitioner/Plaintiff Pinnacle Atlantic Reinsurance Ltd. ("Pinnacle Atlantic") to arbitrate its claims and staying all proceedings in this action having duly come before this Court; and the Court having reviewed the notice of motion (or order to show cause), the affirmation of Jeffrey Park, Esq., dated __, 2026, together with the exhibits annexed thereto; the affidavit of Tobias Engström, Senior Vice President, Reinsurance & Capital Markets, Quorum Insurance Holdings Corp., sworn to __, 2026; the affidavit of Diana Kessler-Hoff, Vice President, Claims & Reinsurance Recoveries, Quorum Casualty & Surety Company, sworn to __, 2026; the Memorandum of Law in Support of Respondents/Defendants' Motion to Compel Arbitration and Stay Litigation; and all exhibits annexed to the foregoing submissions; and any opposition papers submitted by Pinnacle Atlantic Reinsurance Ltd., by its attorneys Hargrove, Fitch & Calloway LLP; and the Court having heard oral argument of counsel on __, 2026; and due deliberation having been had thereon; now, upon all the papers and proceedings had herein, it is hereby
ORDERED as follows:
1. The motion to compel arbitration is GRANTED.
2. Pinnacle Atlantic Reinsurance Ltd. is hereby DIRECTED to submit all claims and disputes arising under or relating to Aggregate Excess-of-Loss Reinsurance Treaty No. PA-QCS-2019-EXL-0044, effective July 1, 2019, as extended, to binding arbitration pursuant to Article 22 of the Treaty and the Rules for the Resolution of U.S. Insurance and Reinsurance Disputes promulgated by ARIAS-U.S., before a three-member arbitration panel sitting in New York, New York.
3. Pinnacle Atlantic Reinsurance Ltd. shall appoint its party-appointed arbitrator within thirty (30) days of the date of this Order, in accordance with the procedures set forth in Article 22 of the Treaty and the applicable ARIAS-U.S. Rules. In the event that Pinnacle Atlantic fails to appoint its party-appointed arbitrator within such thirty (30) day period, the party-appointed arbitrator previously designated by Quorum shall appoint the second arbitrator, and the two arbitrators so appointed shall select the umpire, all in accordance with Article 22.2 of the Treaty and the ARIAS-U.S. Rules.
4. All proceedings in this action are hereby STAYED pending the completion of the arbitration, including but not limited to all discovery, pretrial motions, depositions, document demands, interrogatories, and any other litigation activity.
5. Either party may apply to this Court by order to show cause or by motion on notice for relief from the stay upon a showing that the arbitration has been concluded, that an arbitration award has been rendered, or that other good cause exists for modification or dissolution of the stay.
6. Quorum Casualty & Surety Company and Quorum Insurance Holdings Corp. are awarded their costs and disbursements incurred in connection with this motion, in the amount of $__, to be paid by Pinnacle Atlantic Reinsurance Ltd. within thirty (30) days of the date of this Order.
7. This constitutes the Decision and Order of the Court.
Dated: __, 2026 New York, New York
________________________________________
J.S.C.
Clerk to enter.
Notify all parties.
SUPREME COURT OF THE STATE OF NEW YORK COUNTY OF NEW YORK: COMMERCIAL DIVISION
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PINNACLE ATLANTIC REINSURANCE LTD.,
Petitioner/Plaintiff,
— against —
QUORUM CASUALTY & SURETY COMPANY and QUORUM INSURANCE HOLDINGS CORP.,
Respondents/Defendants.
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CERTIFICATION OF COMPLIANCE WITH COMMERCIAL DIVISION RULES
I. CERTIFICATION PURSUANT TO RULE 17 — GOOD FAITH EFFORT TO RESOLVE
Jeffrey Park, Esq., an attorney duly admitted to practice in the courts of the State of New York and a Senior Associate at Calderwood & Harkness LLP, attorneys for Respondents/Defendants Quorum Casualty & Surety Company and Quorum Insurance Holdings Corp. (collectively, "Quorum"), hereby certifies the following pursuant to Rule 17 of the Rules of the Commercial Division of the Supreme Court:
1. Counsel for Quorum has made a good-faith effort to resolve the issues raised by this motion without motion practice. Specifically, on or about March 18, 2026, Calderwood & Harkness LLP, on behalf of QC&S, sent a formal demand to arbitrate to Hargrove, Fitch & Calloway LLP ("HFC"), counsel for Petitioner/Plaintiff Pinnacle Atlantic Reinsurance Ltd. ("Pinnacle Atlantic"), invoking Article 22 of Aggregate Excess-of-Loss Reinsurance Treaty No. PA-QCS-2019-EXL-0044 and the ARIAS-U.S. Rules, and requesting that Pinnacle Atlantic appoint its party-appointed arbitrator within thirty days.
2. Pinnacle Atlantic, through HFC, has refused to engage in the arbitration process. Pinnacle Atlantic has not responded to the demand to arbitrate. Pinnacle Atlantic has not appointed a party-appointed arbitrator. Pinnacle Atlantic has instead communicated its intention to file suit in this Court.
3. Counsel for Quorum participated in a telephone conference with HFC on or about April 2, 2026, during which counsel discussed the dispute and Quorum's position that arbitration is contractually required. HFC confirmed Pinnacle Atlantic's position that Article 22 is inapplicable and that Pinnacle Atlantic intends to litigate in court.
4. Based on the foregoing, counsel certifies that the dispute raised by this motion — namely, whether the parties' claims must be submitted to arbitration pursuant to Article 22 of the Treaty — cannot be resolved without Court intervention, as Pinnacle Atlantic has refused to participate in the contractually mandated arbitration process.
II. STATEMENT OF MATERIAL FACTS PURSUANT TO RULE 19-a
Pursuant to Rule 19-a of the Rules of the Commercial Division of the Supreme Court, Respondents/Defendants Quorum Casualty & Surety Company and Quorum Insurance Holdings Corp. respectfully submit the following statement of undisputed material facts. Each material fact is followed by a citation to the supporting evidence in the record:
1. QC&S and Pinnacle Atlantic are parties to Aggregate Excess-of-Loss Reinsurance Treaty No. PA-QCS-2019-EXL-0044, effective July 1, 2019 (the "Treaty"). (Park Aff. ¶ 7; Exhibit A.)
2. Article 22 of the Treaty contains a binding arbitration clause requiring the arbitration of "any dispute arising out of or relating to the interpretation, performance, or breach of this Treaty" under the Rules for the Resolution of U.S. Insurance and Reinsurance Disputes promulgated by ARIAS-U.S. before a three-member arbitration panel seated in New York, New York. (Park Aff. ¶ 14; Exhibit A, Art. 22.)
3. Article 16 of the Treaty provides that the Treaty is governed by and construed in accordance with the laws of the State of New York, without regard to its conflicts of law principles. (Park Aff. ¶ 13; Exhibit A, Art. 16.)
4. On February 14, 2026, Pinnacle Atlantic, through its counsel Hargrove, Fitch & Calloway LLP, sent a pre-suit demand letter to QC&S asserting four grounds for recovery of $78,400,000 in reinsurance recoverables previously paid under the Treaty, plus $12,600,000 in interest, for a total demand of $91,000,000. (Park Aff. ¶¶ 21-22; Exhibit B.)
5. All four grounds asserted in the demand letter arise from the interpretation, performance, or alleged breach of specific provisions of the Treaty, namely: (a) late notice under Article 7 regarding the Meridian Docks mass tort cluster; (b) misallocation of $22.3 million in IBNR under Article 5; (c) failure to follow the fortunes under Article 11 regarding the Veridian Financial Services E&O cluster settlement; and (d) alleged $6.8 million ceded earned premium underreporting under Article 3. (Park Aff. ¶¶ 22-23; Exhibit B.)
6. The HFC demand letter of February 14, 2026 asserts that the Article 22 arbitration clause "is inapplicable to the specific claims raised herein," without providing any legal authority or factual basis for that position. (Park Aff. ¶ 24; Exhibit B.)
7. On or about March 18, 2026, QC&S, through its counsel Calderwood & Harkness LLP, sent a formal demand to arbitrate to HFC, invoking Article 22 of the Treaty and the ARIAS-U.S. Rules, identifying QC&S's party-appointed arbitrator, and requesting that Pinnacle Atlantic appoint its party-appointed arbitrator within thirty days. (Park Aff. ¶ 25; Exhibit E.)
8. As of the date of this certification, Pinnacle Atlantic has failed and refused to appoint its party-appointed arbitrator or to otherwise engage in the arbitration process contemplated by Article 22 and the ARIAS-U.S. Rules. (Park Aff. ¶¶ 26-27.)
9. Pinnacle Atlantic, through counsel, has indicated its intention to file a plenary action in this Court rather than submit its claims to arbitration. (Park Aff. ¶ 27.)
10. The Treaty was placed through Broadreach Intermediaries Inc. as the reinsurance intermediary broker, as set forth in Article 9 of the Treaty. (Park Aff. ¶ 12; Exhibit A, Art. 9.)
11. The Treaty has been extended through June 30, 2026 via two successive automatic one-year extensions. Pinnacle Atlantic served a notice of non-renewal dated October 1, 2025, indicating that the Treaty will expire and not be renewed effective June 30, 2026. (Park Aff. ¶¶ 9-10; Exhibit F.)
III. CERTIFICATION. I hereby certify that the foregoing statement of material facts is complete and accurate to the best of my knowledge, information, and belief, formed after reasonable inquiry.
Dated: New York, New York __, 2026
CALDERWOOD & HARKNESS LLP
By: ________
Jeffrey Park, Esq. One Liberty Plaza, 55th Floor New York, NY 10006 Telephone: (212) 558-4000 Facsimile: (212) 558-3588
Email: jpark@calderwoodharkness.com
Attorneys for Respondents/Defendants Quorum Casualty & Surety Company and Quorum Insurance Holdings Corp.