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June 2017 Reinsurance Newsletter

This quarter’s Squire Patton Boggs Reinsurance Newsletter leads off with a summary of a New York federal case where an arbitration award was vacated for evident partiality.  It also features an update on the US-EU Covered Agreement. Please enjoy.… Continue Reading

Relationship? What Relationship?: Evident Partiality and Arbitrator Disclosure

Arbitrators have a special responsibility to disclose all relevant relationships to the parties so that any potential conflicts can be vetted. There are some obvious relationships that need to be disclosed like prior employment by one of the parties. There are other relationships that may be disclosed out of an abundance of caution, but typically … Continue Reading

March 2017 Reinsurance Newsletter

This quarter’s Squire Patton Boggs Reinsurance Newsletter focuses on the certified question sent to the New York Court of Appeals by the Second Circuit on Bellefonte. It also features regulatory updates on the US-EU Covered Agreement as it affects reinsurance and on the new duty to pay insurance and reinsurance claims in the UK. Finally, … Continue Reading

Are Pre-Award Challenges to Arbitrator Qualifications Still Possible?

One of the most vexing issues facing parties in reinsurance arbitrations is whether the other side’s party-appointed arbitrator qualifies under the arbitrator criteria set forth in the arbitration clause of the reinsurance agreement. The issue is frustrating because sometimes the arbitrator criteria is not as clear as it should be, which leaves room for creative appointments. … Continue Reading

Umpire Disclosure and Vacatur

There is no doubt that the issue of arbitrator disclosures is a very important issue in reinsurance arbitrations and especially in arbitrations conducted under the traditional US party-appointed system. Disclosures are even more important in the selection of the umpire. A recent decision in a long-running reinsurance battle addresses the issue of the timeliness of … Continue Reading

American Rule Prevails on Petition to Vacate Arbitration Award

Some contracts, including insurance and reinsurance contracts, include provisions providing that the successful party’s damage award will include all costs of the suit or arbitration, including attorney fees. This type of clause modifies the traditional default American Rule of costs and fees, in which each litigant pays its own attorney fees, win or lose. What … Continue Reading

Evident Partiality As a Ground to Vacate An Arbitration Award

Most insurance and reinsurance arbitrations fall within the scope of the Federal Arbitration Act (“FAA”) because they involve interstate commerce. But vacating an FAA arbitration award (there is no “appeal”) is an uphill battle. Only limited grounds exist to mount the challenge and very few challenges are successful. Evident partiality is one of those grounds.… Continue Reading

Confidentiality in Arbitration

Much has been said over the years about the benefits of arbitration as a private, confidential mechanism for resolving business disputes. For decades the courts, especially the federal courts, have touted the confidential nature of private commercial arbitration. Courts regularly defer to arbitration and there is a clear federal policy favoring arbitration. So why when … Continue Reading

Umpire Selection Impasse? Second Circuit Directs District Court to Appoint Umpire

You are involved in a reinsurance dispute in arbitration. Both sides have named their party-appointed arbitrators and have exchanged umpire candidates. One side rejects the other side’s candidates because the objecting party believes that one or more of the candidates does not qualify as an arbitrator under the terms of the arbitration clause in the … Continue Reading
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