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American International Group and C.V. Starr & Co. Inc. have agreed to some form of arbitration to settle the dispute that began when Maurice Greenberg was ousted as AIG chairman.

At a hearing yesterday, New York Supreme Court Justice Herman Cahn urged the parties to take the mediation path and set a hearing for Monday at 11 a.m. to monitor progress and hear continuing arguments on both sides as to his previous restraining orders.

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