Archives: Award

Subscribe to Award RSS Feed

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

Arbitration Means Arbitration Even If It Is About Arbitration

No one should doubt that the federal policy in favor of arbitration is broad and deep. It is evident in how difficult it is to vacate an arbitration award or avoid having to arbitrate a dispute where there is a broad arbitration provision. A recent case makes this even clearer.… 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

Who Decides the Preclusive Effect of a Prior Arbitration Award?

What happens when one party loses an arbitration and then commences a second arbitration against the same counterparty over similar issues? Can the party that won the arbitration and then had the award confirmed in federal court obtain an injunction precluding the first party from moving forward with the second arbitration? Apparently not.… Continue Reading
LexBlog