Southern Foodservice Management, Inc. v. American Fidelity Assurance Co.

HOUSTON, Justice.

This is an appeal from an order of the Jefferson Circuit Court granting the defendants’ motion to compel arbitration. Southern Foodservice Management, Inc. (“Foodservice”), filed an action against Insurance Mass Marketing Systems, Inc. (“IMMS”), and American Fidelity Assurance Company (“American Fidelity”), alleging fraud, suppression, bad-faith failure to pay a claim, and breach of contract. IMMS and American Fidelity filed a motion to compel arbitration based on an arbitration clause contained in a contract for reinsurance. Foodservice opposed the motion; however, the trial…