New York Federal Court Allows Final Arbitration Award to Remain Sealed

Photo by Tayeb MEZAHDIA on

Reinsurance arbitrations are typically confidential and generally proceed with a confidentiality agreement in place protecting all arbitration information, including the final award, from disclosure. This is in contrast to legal proceedings, including proceedings collateral to arbitrations, where generally the public’s right to judicial documents outweighs the parties’ privacy. In recent years, when parties to reinsurance arbitrations have gone into court to confirm, enforce, modify or vacate arbitration awards, courts have been reluctant to keep the final awards under seal. In fact, some parties have used this trend as a litigation strategy to “unseal” confidential final arbitration awards by going to court to confirm an award where there was no indication that the losing party would not comply with the award.

Bucking that trend, a New York federal court recently allowed the final arbitration award to remain sealed. Is the tide turning?

Continue reading “New York Federal Court Allows Final Arbitration Award to Remain Sealed”