Participation In Early Stages of Arbitration Dooms Petition to Stay Arbitration

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When a party receives and arbitration demand and there is a dispute about whether there is an agreement to arbitrate between the parties, participating in the early stages of the arbitration may be problematic for a subsequent effort to dispute arbitrability. This issue can arise when there has been an assignment or transfer of a reinsurance agreement or the right to the reinsurance receivables to an assignee who seeks to arbitrate against the original counterparty. In a recent case, a New York state court had to address these issues.

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Preclusive Effect of an Arbitration Award in a Reinsurance Dispute

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IRMI.com has published my latest Expert Commentary on Reinsurance. This commentary focuses on the preclusive effect of a prior arbitration award and who gets to decide whether the prior arbitration award in a reinsurance dispute has any preclusive effect on a subsequent dispute. You can read the commentary here.

Counterclaim for Breach of Reinsurance Contract Survives Even Though No Reinsurance Contract Has Been Found

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Does a missing reinsurance agreement preclude a counterclaim for breach of that missing reinsurance contract? Not at the pleadings stage according to a Hawaii federal court.

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Reinsurance Information Is Hard to Withhold

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In nearly every insurance coverage, bad faith or defense counsel legal malpractice case the insurance company is asked to produce reinsurance information and communications related to the underlying claim. This information is requested for the possibility that the insurance company has revealed something to the reinsurers that might help the policyholder or other counterparty. Whether reinsurance information is ever really helpful is a discussion for another day but what we do see from the courts is a clear trend toward compelling discovery of reinsurance information.

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Second Time Is No Charm: Motion to Compel Arbitration Denied

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Recently, I wrote about a Texas intermediate appellate court’s affirmation of the denial of a reinsurer’s motion to dismiss a claim brought by an insured school district. Travelers Indem. Co. v. Grapeland Indep. Sch. Dist., No. 12-22-00311-CV, 2023 WL 3371072, at *3 (Tex. App. May 10, 2023). The main legal issue in the case was whether the concept of direct benefit estoppel applied. Well, the reinsurer tried again in Connecticut federal court.

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Illinois Federal Court Compels Arbitration on Issue of Preclusive Effect of a Prior Arbitration Award

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Who decides whether a prior arbitration award precludes a subsequent dispute between the parties? That is the question that was faced by an Illinois federal court. Given the strong presumption in favor of arbitration in the federal courts, how do you think the court decided the ensuing motion to compel arbitration versus the motion to stay the arbitration?

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Risk Pool’s Motion to Amend Complaint Granted

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Welcome back to the Washington State federal court. For those who regularly read this blog you will remember the case where the court granted a motion to compel arbitration against one reinsurer and not the other. That arbitration concluded, which allowed the litigation to continue against the remaining reinsurer. The cedent moved to amend the complaint and the reinsurer move for judgment on the pleadings.

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Non-Signatory? No Arbitration

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It is not the usual case where a reinsurer seeks to compel a policyholder to resolve a dispute in arbitration based on the reinsurance contract’s arbitration provision, but sometimes that makes the most sense. Whether a court will allow it depends on the facts. In a case decided earlier this year, a state intermediate appellate court affirmed the motion court’s denial of the reinsurer’s motion to dismiss or stay in favor of arbitration.

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Court Appoints Umpire in Coverage Dispute

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Many arbitration clauses, especially those that reference arbitration rules, provide for a party to go to the court where there is an impasse in appointing the arbitrator or umpire. In a case decided earlier in 2023, an insurance coverage dispute subject to arbitration landed in court to resolve a dispute over selection of the umpire.

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Bias Challenge to Arbitrator Fails

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Attempting to remove an arbitrator at the early stages of arbitration for alleged bias is difficult to do. The ability to make the challenge depends on the law of the jurisdiction governing procedural issues in the arbitration. Nevertheless, even if entertained, a petition to remove an arbitrator for bias is an uphill battle. In a recent case, the petitioner lost the battle, at least in the New York federal court.

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