Arbitration

Subscribe to Arbitration via RSS

Defendants, certain ceding companies, appealed a judgment from the U.S. District Court for the Southern District of New York holding them liable for fraudulently inducing the plaintiff reinsurer to enter into two reinsurance facilities.  The defendants also appealed the portion of the judgment finding (a) that the cedents waived their right to arbitration by pursuing it in a summary judgment motion instead of at the outset of the dispute and (b) that the reinsurer’s claims sounded in fraud (as opposed to contract) and were thus not arbitrable under a provision in a facultative reinsurance agreement providing for arbitration of disputes “arising out of the interpretation of this agreement.” …
Read More Second Circuit Finds that Reinsurer’s Fraud Claims Are Not Arbitrable, but Reverses District Court’s Judgment and Holds that those Claims Are Time-Barred, Relieving Cedents of Liability

Helene Tomasian, a non-party to an arbitration between Ware and C.D. Peacock, Inc., moved to quash an arbitrator’s subpoena compelling her attendance at a pre-hearing deposition.  See Ware v. C.D. Peacock, Inc., No. 10-cv-2587 (N.D. Ill. 2010).  The subpoena was issued at the request of Peacock after the arbitrator denied its motion for summary judgment based upon “in large part” the affidavit of Ms. Tomasian. …
Read More Federal District Court Finds that Arbitrator Lacks the Authority to Issue Pre-Hearing Deposition Subpoena to Non-Party Under the Federal Arbitration Act

A decision of the Eighth Circuit Court of Appeals, Northport Health Services of Arkansas, LLC v. Rutherford, No. 09-2433 (8th Cir. 2010), recently held that diversity of citizenship jurisdiction in the context of a motion to compel arbitration under § 4 of the Federal Arbitration Act (“FAA”) can be determined by looking at the citizenship of the parties named in the proceedings before the district court, plus any indispensible parties who must be joined. …
Read More Eighth Circuit Rules on Diversity Jurisdiction for Federal Actions to Compel Arbitration

Plaintiff moved to vacate an arbitration award issued in favor of defendant Stroehmann Bakers on the grounds that, among other things, the arbitrator’s decision was in “manifest disregard of the law.”  The U.S. District Court for the District of New Jersey, relying upon Third Circuit case law, noted that plaintiff was required to establish that the arbitrator’s award had absolutely no support from the record in order to prevail on this basis.  The court found that plaintiff had failed to meet the standard for manifest disregard of the law, and thus denied plaintiff’s motion to vacate. …
Read More New Jersey Federal Court Finds That Arbitration Award Was Not in Manifest Disregard of the Law

In Citibank, N.A. v. Stok & Associates, P.A., No. 09-13556 (11th Cir. July 20, 2010), the United States Court of Appeals for the Eleventh Circuit ruled that a party did not waive its right to compel arbitration even though it initially participated in the court proceeding. …
Read More Eleventh Circuit Rules that Party Did Not Waive Its Right to Arbitrate

Plaintiff Hartford Steam Boiler Inspection and Insurance Company (“Hartford”) appealed a decision permitting a court to remand a dispute over an arbitral award to the arbitration panel for clarification of that award.  Hartford argued that the court’s holding was overruled by the U.S. Supreme Court’s decision in Hall Street Associates, LLC v. Mattel, Inc., 552 U.S. 576 (2008). …
Read More Connecticut State Court Finds that a Court is Permitted to Remand an Arbitration Award to Panel for Clarification Post-Hall Street

In Chalbury Mccouat International Ltd v. P.G. Foils Ltd [2010] EWHC 2050 (TCC) a dispute had arisen between Chalbury, an English company, and Foils, an Indian company, under a contract between Chalbury and Foils for the dismantling of a manufacturing plant in the Netherlands. The contract contained an arbitration clause which did not provide a procedure for the appointment of a tribunal. The parties failed to appoint a tribunal. …
Read More UK: Appointment of Arbitral Tribunal by English Court

Zev Lagstein, M.D. filed a claim for benefits under a disability policy issued by Certain Underwriters at Lloyd’s London (“Lloyd’s”) after he developed heart disease and other ailments.  After Lloyd’s failed to pay out on Lagstein’s claim, he brought suit in federal court, which was stayed pending arbitration.  A three-member arbitration panel ultimately found in favor of Lagstein, awarding him the full amount of benefits under the disability policy, plus punitive damages and damages for emotional distress. …
Read More Ninth Circuit Reverses District Court’s Vacatur of Arbitration Award

In a decision by the United States District Court for the Southern District of New York, AXA Versicherung AG v. New Hampshire Ins. Co., 05 Civ. 10180 (JSR) (S.D.N.Y. 2010), the court held that certain fraud claims were not a matter of contract interpretation and, therefore, not arbitrable under a provision in a facultative reinsurance agreement that provided for arbitration of disputes “arising out of the interpretation of this agreement.” …
Read More Federal Court Finds that Fraud Claim is not Arbitrable

In B v A [2010] EWHC 1626 (Comm), Mr Justice Tomlinson was asked to determine a preliminary issue concerning whether the claimant (B) had a realistic prospect of challenging an arbitration award (the Award) under sections 67 and 68 of the Arbitration Act 1996 (the Act). …
Read More UK: English Commercial Court Considers Challenge to an Arbitration Award