The U.S. Supreme Court recently asked the Solicitor General to file a brief on behalf of the United States expressing its views on whether the Convention on the Recognition and Enforcement of Foreign Arbitral Awards (the “New York Convention”) and the federal legislation that enforces it, the Federal Arbitration Act (“FAA”),  are subject to the reverse preemption provision of the McCarran-Ferguson Act.  At issue in the case is the applicability of a Louisiana state law that deems arbitration agreements in insurance contracts to be unenforceable.  As previously discussed, when the U.S. Court of Appeals for the Fifth Circuit reversed a Louisiana district court ruling and held that, under the McCarran-Ferguson Act, the Louisiana state law does not “reverse preempt” the provisions of the New York Convention mandating arbitration of reinsurance agreements that fall within that statute.  The plaintiff in the lawsuit, the Louisiana Safety Association of Timbermen – Self Insured Fund, has filed a writ of certiorari with the U.S. Supreme Court asking it to address the Fifth Circuit’s decision and decide whether the portion of the FAA that implements the New York Convention is subject to the reverse-preemption provisions of the McCarran-Ferguson Act.

Stayed tuned for developments in this case on www.insurereinsure.com.