Arbitrability

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Arbitration Prevails in Coverage Dispute

In a recent coverage dispute, an Indiana federal court addressed a two-pronged issue.  First, in the case of a multi-tiered ADR clause, who decides whether the dispute should be conducted under the arbitration section of the clause?  Second, where there are several arbitration clauses, who decides which one prevails?  You’ll have to read more to … Continue Reading

June 2020 Reinsurance Newsletter

The Squire Patton Boggs June 2020 Reinsurance Newsletter is now available for your reading pleasure.  You can read the Newsletter on the Squire Patton Boggs website at this link.  In this issue we discuss the Second Circuit’s Utica v. Fireman’s Fund decision, which reversed a judgment for the cedent after a jury verdict.  We also … Continue Reading

New York Federal Court Compels Arbitration in Life Reinsurance Dispute Over Trust Assets

Where two or more agreements are involved in a transaction, a dispute over one of the agreements often raises arbitrability questions.  This is especially true where a reinsurance agreement with an arbitration clause is paired with a trust agreement with no arbitration clause.  In a recent life reinsurance case, a New York federal court addressed … Continue Reading

Reverse Preemption Is Alive and Well in Washington State

Most reinsurance contracts have binding arbitration provisions.  The Federal Arbitration Act (FAA) sets out a national policy in favor of arbitration.  Yet, there are states that expressly preclude arbitration provisions in insurance contracts.  Does that apply to reinsurance contracts?… Continue Reading

Arbitrators to Decide If Reinsurance Rebilling After Final Arbitration Award Is Precluded

What happens when, after a reinsurance arbitration over how the ceding company billed the reinsurer is resolved in the reinsurer’s favor with a final award confirmed by the court, the ceding company rebills the reinsurer for the same losses (but differently than the way it did during the prior arbitration)?  If the reinsurer again denies … Continue Reading

Who Decides Whether a Reinsurer Is a Run-off Reinsurer?

In the past 10 years or so, several ceding companies began adding run-off reinsurer clauses to their reinsurance contracts to mitigate disputes that might arise with reinsurers no longer actively in business.  In a recent case, a Georgia federal court had to address whether it or an arbitration panel should determine whether the reinsurer was, … Continue Reading

March 2020 Reinsurance Newsletter

The Squire Patton Boggs Reinsurance Newsletter has been published.  The March 2020 Newsletter includes a discussion of a Third Circuit consolidation issue, reinsurance cases resulting from the recent hurricanes in Puerto Rico, an intervention case in the life reinsurance world, and, of course, our annual A Brief Review of Reinsurance Trends section covering the important … Continue Reading

Who Demands Arbitration Is Key to Whether Arbitration Will Be Compelled

Complex corporate structures and internal reinsurance relationships can complicate legacy reinsurance relationships.  This is especially true where the underlying losses are long-tail liabilities and where companies have changed, merged, combined and succeeded each other.  A key question for any legacy reinsurance treaty is whether the losses now being ceded come within the scope of the … Continue Reading

Who Decides Consolidation Issue? A New Arbitration Panel or the Old One?

It is pretty well settled under modern arbitration law, including reinsurance arbitrations, that procedural issues like consolidation are questions for the arbitrators and not the courts.  But what happens if there are multiple arbitration panels?  Which panel decides the consolidation application?  And what if one arbitration has been completed and a motion to consolidate is … Continue Reading

December 2019 Reinsurance Newsletter

In our December 2019 Reinsurance Newsletter we discuss non-signatories being bound by arbitration clauses, a case involving who decides arbitrability questions, a functus officio case, a remand to an arbitration panel to clarify an arbitration award, and an update on TRIA.  A number of other case developments are digested as well.  Please enjoy.  Feedback is always welcomed.… Continue Reading

Unique Arbitration Clause Does Not Prevent Granting of Motion to Compel Arbitration

Whether a motion to compel arbitration will be granted depends on, among other things, whether the arbitration provision is broad or narrow and whether the dispute falls within the scope of the arbitration provision.  In a recent case, a California federal court construed unique language in an arbitration provision in a reinsurance agreement, granted the … Continue Reading

In State Court It’s Just as Tough to Vacate an Arbitration Award

Most commercial arbitrations fall under the Federal Arbitration Act.  But some arbitrations are intra-state so they come within the various state arbitration laws.  In New York, for example, Article 75 of the Civil Practice Law and Rules governs arbitration.  When it comes to vacating an arbitration award, however, choosing state law over the FAA is … Continue Reading

Non-Signatory Surety Bound By Arbitration Clause in Incorporated Contract

An arbitration provision in a contract typically applies only to the contracting parties.  Where, however, the contract is incorporated by reference into a second agreement, if it is broad enough, the party to the second agreement–although a non-signatory to the original agreement–may find that the arbitration provision applies to them as well.  This was the … Continue Reading

In a Battle of Conformity and Preemption, Arbitration Prevails

The Supremacy Clause of the U.S. Constitution nullifies state laws that conflict with federal law and treaties of the U.S.  But, under the McCarran-Ferguson Act, state insurance law reverse preempts federal law that interferes with the business of insurance as regulated by the states.  This issue comes up in conflicts between anti-arbitration provisions in certain … Continue Reading

How Does the Latest US Supreme Court Ruling on Class Arbitration Affect Reinsurance Arbitration?

The US Supreme Court’s pronouncements on class arbitration have little to do with reinsurance arbitrations.  But, when the Supreme Court speaks on arbitrations and construes the Federal Arbitration Act (“FAA”), there may be statements or even holdings by the court that could affect aspects of reinsurance arbitrations, so we pay attention.  In the most recent … Continue Reading

The Consolidation Circus Continues

In December 2018, we blogged about a new reinsurance arbitration consolidation case.  We mentioned that the reinsurer filed several other petitions to compel arbitration in various jurisdictions all seeking to allow for consolidation of these disputes in three arbitrations  based on the different reinsurance programs.  The facts are the same so read the December 2018 post … Continue Reading

March 2019 Reinsurance Newsletter

Our March 2019 Reinsurance Newsletter is available for your reading pleasure.  It covers reinsurance developments since December 2018 and also includes regulatory and policy updates as well as our annual Brief Review of Reinsurance Trends.  Please enjoy.  You can access the Newsletter here.… Continue Reading

Arbitration of Insurance Coverage Disputes

Coverage disputes between insurance carriers and policyholders are ripe for resolution through arbitration.  ARIAS•U.S. is working on a project to create an arbitration pathway, including modified rules and requirements for certified arbitrators, for these types of disputes and others.  But unless the parties agree or the insurance contract contains an arbitration clause, the arbitration option … Continue Reading

New Arbitrability Decision from the Supreme Court

A new arbitration decision was handed down by the U.S. Supreme Court on January 8, 2019.  My colleagues in our labor and employment practice swiftly blogged about the new decision so I won’t repeat their cogent analysis. The case has nothing to do with insurance or reinsurance. But the principles set forth by Justice Kavanaugh … Continue Reading

New Case on Consolidation in Reinsurance Arbitrations

It’s pretty clear in most jurisdictions that the question of whether disputes under multiple reinsurance contracts should be consolidated is a question for the arbitrators and not the court.  What’s less clear is how the parties get an arbitration panel in place to address the consolidation issue. A California federal court recently addressed this issue.… Continue Reading

March 2018 Reinsurance Newsletter

Our March 2018 Reinsurance Newsletter is now available for your reading pleasure.  This issue covers the Global v. Century decision by the New York Court of Appeals answering the Second Circuit’s certified question as well as our annual review of reinsurance trends in 2017, as well as cases involving reinsurance for the September 11th terrorist attacks … Continue Reading

Confidentiality Agreements in Reinsurance Arbitrations

Confidentiality agreements in reinsurance arbitrations are ubiquitous, but often cause concern when a subsequent arbitration arises over the same or similar contracts with the same or similar parties.  A question that has arisen with some frequency, but which has not been fully addressed in court, is whether the confidentiality agreement in the first arbitration precludes … Continue Reading

September 2017 Reinsurance Newsletter

Our September 2017 Reinsurance Newsletter includes a featured article on discovery of reserves and reinsurance information as well as an update on the US-EU Covered Agreement.  It also reports on recent cases, including a manifest disregard case, a case on Insurance Law 1213 security and reinsurance collection issues by the assignee of a liquidator.  Please … 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
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