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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

It’s Not Over Until It Is Over

In reinsurance arbitrations, once the arbitration panel issues its final award its job is over.  That’s what the doctrine of functus officio means.  But there are exceptions to the functus officio rule (see our Blog from November 2018).  Additionally, what happens when a panel retains jurisdiction after issuing the final award?  In a recent case, … Continue Reading

Pre-Answer Security and Preclusion Based on Arbitral Decision — Who Decides?

In reinsurance disputes where one party is insolvent or has financial difficulties, the other side often demands security.  Where a non-domiciliary is involved, some states have pre-answer security requirements, which have been held to apply in reinsurance arbitrations.  In a procedurally complicated case, where an arbitration panel issued a security award and then stayed the … 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

Collateral Effect of US-EU Covered Agreement on Reinsurance Disputes

With the signing of the Bilateral Agreement on Prudential Insurance and Reinsurance Measures (the “Covered Agreement“), the EU and US have embarked on a five-year road towards cooperation on insurance and reinsurance competition, supervision and regulation.  While the main purpose of the Covered Agreement was leveling the playing field for international reinsurers and agreeing on cooperation and information … Continue Reading

When a Reinsurance Contract Is an Insurance Contract

You know the old saying: if it walks like a duck and quacks like a duck it must be a duck! So when a contract is called a Facultative Reinsurance Agreement is it a reinsurance contract or an insurance contract? Recently a Missouri appellate court addressed this issue to determine an appeal of the denial … Continue Reading

Second Circuit Closes an Open Question: Grant of Motion to Compel Arbitration Requires Stay Not Dismissal

Sometimes when a reinsurance dispute arises one of the parties may decide to file a complaint in court rather than demand arbitration. This may happen in spite of an arbitration clause in the reinsurance contract. Perhaps one of the parties was not a signatory to the arbitration agreement. Or perhaps one or more of the … Continue Reading
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