Commentary on insurance and reinsurance disputes and related issues and the website of Schiffer Law & Consulting PLLC
Commercial property insurance policies written in hurricane-prone jurisdictions often contain arbitration clauses. Can a policyholder avoid arbitration and bring breach of contract claims into court instead? Earlier this year, a Louisiana federal court said no.
Continue reading “Louisiana Federal Court Compels Arbitration Over Hurricane Property Damage Losses”
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.
Continue reading “Court Appoints Umpire in Coverage Dispute”
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.
Continue reading “Bias Challenge to Arbitrator Fails”
Recently, I wrote a reinsurance commentary for IRMI.com on reinsurance issues with captive, pools and other risk-sharing entities. Coincidentally, in January 2023, a Washington federal court had to deal with a risk-sharing pool’s claims of breach of a reinsurance contract and a reinsurer’s motion to compel arbitration.
Continue reading “Washington Federal Court Grants Motion to Compel Arbitration”
Coverage disputes between US policyholders and non-US insurers like Underwriters at Lloyd’s of London continue to raise jurisdictional and related issues in US courts. The issues become further exacerbated when there is an arbitration clause in the insurance contract and the non-US insurer seeks to stay the coverage litigation and compel arbitration under the Convention on the Recognition and Enforcement of Foreign Arbitral Awards (the “New York Convention), to which the US and the UK and most EU countries are signatories.
In a recent case, a Louisiana federal court, hearing the case after removal from the state court, granted the insurers’ motion to stay litigation and compel arbitration.
Continue reading “Arbitration Clause Upheld In Coverage Dispute”
The Ninth Circuit has weighed in on the controversy over whether state anti-arbitration provisions in insurance codes reverse preempt the arbitration provisions of The Convention on the Recognition and Enforcement of Foreign Arbitral Awards (the “New York Convention”) because of the McCarran-Ferguson Act. The court joined several other circuits in holding that Article II, Section 3 of the New York Convention is self-executing and, therefore, arbitration can be compelled.
Continue reading “Ninth Circuit Compels Arbitration Holding Art. II, Sec. 3 of New York Convention Self-Executing”
