Archives: Vacate

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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

Ex Parte Communications and Vacating an Arbitration Award

When a reinsurance arbitration is conducted under non-neutral rules or practices, when and how ex parte communications are allowed to take place between a party’s counsel and a party’s party-appointed arbitrator are important items to resolve at the organizational meeting. A typical, but not universal, formulation is to cut-off ex parte communications when the first pre-hearing … 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

Too Little, Too Late: Post-Arbitration Award Frustrations

Armchair quarterbacking or second-guessing an outcome after an event has occurred is a skill displayed by many. The same is true following a reinsurance arbitration award. It is very easy to second-guess the arbitration award or wish that some evidence or testimony was presented differently. Anyone who has ever had an arbitration award that was … Continue Reading

The Honorable Engagement Clause and Flexibility In Arbitration Award Relief

Those of you steeped in reinsurance know about the honorable engagement clause. It’s a provision found in the arbitration clause of some (mostly older) reinsurance contracts that gives guidance to the arbitration panel on how they should construe the disputed reinsurance contract. I use the term “guidance” loosely here because a typical honorable engagement clause … Continue Reading
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