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Court Upholds Attorney-Client Privilege Despite Advice Of Counsel Defense In Tax Case Involving Reinsurance Transaction

This case involves a tax dispute centering on whether certain “purported” insurance and reinsurance transactions “lacked economic substance.” Following an in camera review of communications identified in Respondents’...more

Court Declines To Determine Whether Reinsurance Syndicate For Which A Company Fronted Should Be Involved In An Arbitration

The parties in this case presented to a court the issue of whether a reinsurance syndicate for which Federal Insurance acted as “a front” was a real party in interest and should be involved in an arbitration between Federal...more

Northern District Of Illinois Dismisses Lawsuit Involving Reinsurance For Private Mortgage Insurance

In a lawsuit filed by the Rehabilitator for a private mortgage insurance provider, the District Court found that the causes of action either failed to meet the Iqbal pleading standard, contained implausible allegations, or...more

Federal Court Retains Jurisdiction Over Action Stayed For Arbitration, Pre-Empting State Court

Following Davis’s filing of a federal lawsuit alleging state malpractice and breach of contract claims, as well as federal Fair Housing Act and Civil Rights Act claims, the Court ordered the action be stayed pending...more

Court Confirms Interim Arbitration Award Requiring Posting Of Pre-Hearing Security

Respondent moved for an immediate stay of an arbitration of claims relating to the purchase of insurance and to vacate the panel’s interim award requiring the posting of pre-hearing security.  Petitioner moved to confirm the...more

Pennsylvania Federal Court Finds Continuing Violations Doctrine Applicable To RESPA Claims

A Pennsylvania federal court applied the continuing violations theory to RESPA’s one-year statute of limitations, and allowed Plaintiffs leave to amend their complaint to modify their RESPA claim....more

Kentucky Federal Court Finds Subject-Matter Jurisdiction Has Not Been “Reverse Preempted” By Application Of Kentucky’s Insurers...

The question presented to the Court was “whether federal law has opened the door for state law to ‘reverse preempt’ the diversity jurisdiction statute.” The McCarran-Ferguson Act was enacted by Congress to prevent federal...more

Sixth Circuit Affirms Finding Arbitrator Had Reasonable Basis To Deny Wage Discrimination Claim

Plaintiff raised three arguments in support of her motion to vacate an arbitration award: “(1) that the arbitrator exceed his powers or so imperfectly executed them that a mutual, final, and definite award upon her claims was...more

Fourth Circuit Affirms Finding That Arbitration Agreement In Payday Loan Obtained Over The Internet Is Unenforceable

Plaintiff electronically signed a contract which contained: (1) terms governing the loan; (2) an agreement to submit disputes to arbitration; and (3) a choice of law provision which required the application of Otoe-Missouria...more

Multiple Instances of Defectively Designed, Manufactured, or Installed Windows Does Multiple Occurrences Make

After previously holding that various claims against the insured, Pella, alleged property damage caused by an “occurrence,” thus triggering Liberty Mutual Insurance Company’s (“Liberty”) coverage obligations under various CGL...more

Texas Court Finds Policy Contained Delegation Clause Requiring Arbitration Under English Law

A Texas federal court addressed a dispute as to whether the insurance policy at issue contained an arbitration agreement and whether it required arbitration of the particular claim. Looking at the “Law and Practice” provision...more

McCarran-Ferguson Act Prohibits Pursuit Of RICO Claims Against Insurer

A Plaintiff annuity holder was prohibited from pursuing her federal racketeering claims against an insurance company and its affiliates, as doing so would impair state regulation of insurance business, contrary to the...more

UK Supreme Court Confirms English Courts Lack Jurisdiction Under The Arbitration Act 1996 To Compel Parties To Provide Security...

As a condition to challenging enforcement or recognition of an arbitration award, the UK Supreme Court overturned a Court of Appeal decision which imposed a $100 Million security obligation on a New York Convention arbitral...more

California Supreme Court Finds Waiver Of Statutory Remedy In Arbitration Agreement Contrary To Public Policy

“Agreements to arbitrate claims for public injunctive relief under [California’s Consumers Legal Remedy Act or Unfair Competition Law], or the false advertising law are not enforceable in California.” The California Supreme...more

Pennsylvania Appellate Court Denies Petition To Transfer Structured Settlement Involving LHWCA

Relying on Federal Court precedent, a Pennsylvania intermediate appellate court resolved whether the plain language of Section 916 of the Longshore and Harbor Workers’ Compensation Act (“LHWCA”) prohibits the assignment of...more

Eleventh Circuit Looks To Alabama’s Doctrine Of “Intertwining” To Determine Non-Signatory Cannot Be Compelled To Arbitrate

Under Alabama law, “arbitration may be compelled under the doctrine of ‘intertwining’ where arbitrable and nonarbitrable claims are so closely related that the party to a controversy subject to arbitration is equitably...more

Ninth Circuit Confirms Arbitration Award Challenged For Lack Of “Reasoned Opinion”

Petitioner Daniel Olson brought an action in federal court seeking vacatur of an award against him in arbitration of an employment dispute. He challenged the arbitration award for lack of a “reasoned opinion” and failure of...more

New Jersey Court Compels Arbitration, Declines To Appoint Substitute Arbitrator Despite “Exorbitant” Administrative Fee

Terra Finance LLC brought an action to compel arbitration. Defendant Acrow Corporation moved to dismiss the action under Fed. R. Civ. P. 12(b)(6), arguing that the arbitration clause was unconscionable, and therefore...more

NY DFS Cybersecurity Regulations Take Effect March 1, 2017

We previously reported on the New York Department of Financial Services’ proposed cybersecurity regulations. During the public comment period, the DFS received over 150 comments. In response, the DFS announced on December 28,...more

Sixth Circuit Affirms District Court’s Colorado River Abstention And That State Court Appropriately Determined Arbitration...

An earlier-filed state court action determined the enforceability of an arbitration agreement, before a federal district court could rule on a motion to compel arbitration. The federal district court thereafter abstained from...more

Petition To Vacate Arbitration Award Served By Email Did Not Constitute Service Under FED. R. CIV. P. 5

The Second Circuit has affirmed a decision finding email insufficient for service, absent consent to such method. In the underlying district court, the Petitioner emailed a copy of his petition to one of Respondent, Deutsche...more

Fifth Circuit Follows Precedent In Upholding Employment Agreement Containing Class Action Waivers

Relying on D.R. Horton Inc. v. NLRB and Murphy Oil, USA v. NRLB, the Fifth Circuit found the NLRB’s decision that Citibank violated the National Labor Relations Act by requiring employees to sign an arbitration agreement...more

Supreme Court Grants Certiorari In Three Class Arbitration Waiver Cases Amidst Developing Federal Circuit Split

The Supreme Court will hear argument on whether arbitration provisions in employment agreements which waive class actions are a violation of the National Labor Relations Act (“NLRA”). The three cases are as follows...more

NY DFS Proposed Cybersecurity Regulations Revised and Implementation Delayed

We previously reported on the New York Department of Financial Services’ proposed cybersecurity regulations. During the public comment period, the DFS received over 150 comments. In response, the DFS announced on December 28,...more

Ninth Circuit Applies New York Law In Determining Assignment Of Rights To Arbitration Proceeds Was Not A Material Breach Of...

Finding the alleged breach of an anti-assignment provision in a Settlement Agreement was not material, the Ninth Circuit held that the FAA did not provide grounds for vacatur of an arbitration award. In so holding, the Court...more

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