News & Analysis as of

Mandatory Arbitration Clauses Insurance Litigation

Foley & Lardner LLP

S.D.N.Y. Finds Arbitration Clause in Insurance Contract Unenforceable, Following Second Circuit Precedent that the...

Foley & Lardner LLP on

Two recent decisions from the United States District Court for the Southern District of New York highlight the split among circuits on whether state insurance laws that prohibit arbitration of insurance and reinsurance...more

K&L Gates LLP

HUB Talks: Arbitration World: International Arbitration Clauses in Insurance Policies: Are They Valid in States With...

K&L Gates LLP on

In this episode, partners Chris Valente and Jackie Celender, along with associates Michael Creta and Peter Ayers, discuss the impact that state anti-arbitration insurance statutes have on the enforceability of international...more

Winstead PC

Insurance Broker Does Not Ordinarily Owe Fiduciary Duties To A Client

Winstead PC on

In Hitchcock Indep. Sch. Dist. v. Arthur J. Gallagher & Co., a school district sued it insurance broker for failing to obtain insurance policies that did not have arbitration and choice-of-law clauses that favored New York....more

Carlton Fields

Seventh Circuit Rejects Third-Party Administrator’s Attempt to Avoid Multimillion-Dollar Arbitration Award

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Standard Security Life Insurance Company of New York and Madison National Life Insurance Co. entered into an administrative services agreement with FCE Benefit Administrators Inc. under which FCE administered insurance...more

Pillsbury - Policyholder Pulse blog

Buyer Beware: Search for Litigation Time Bombs in Your Policies

Insurance policies are legal documents. In the event of a dispute, their scope and meaning will be submitted to a court or arbitrator for interpretation. Most brokers are not attorneys. Most risk managers are not attorneys....more

Carlton Fields

Court Compels Arbitration With Respect to Insurers, Not Brokers

Carlton Fields on

The U.S. District Court for the Southern District of Texas recently compelled arbitration against insurers but not brokers related to a commercial insurance dispute....more

Payne & Fears

California Appellate Court Confirms: Additional Insureds Are First-Class Citizens

Payne & Fears on

Many businesses shift risk by requiring others with whom they do business – e.g., vendors, subcontractors, suppliers, and others – to procure insurance on their behalf by making the business an “additional insured” under the...more

Carlton Fields

District Court Enforces Mandatory Arbitration Clause, Despite State Law Prohibiting Such Provisions in Insurance Contracts

Carlton Fields on

Defendants, Certain Underwriters at Lloyd’s and its third-party claims administrator, CJW & Associates, sought to enforce a mandatory arbitration clause in a Lloyd’s policy issued to the plaintiffs. ...more

Carlton Fields

Munich Re Wins Arbitration It Initially Resisted, And Parties Agree To Dismiss Federal Lawsuit Against Munich Re As A Result

Carlton Fields on

Alabama Municipal Insurance Corporation (AMIC) has agreed to dismiss with prejudice its federal lawsuit against Munich Re after an arbitrator rendered judgment against AMIC in a case we previously wrote about here. ...more

Carlton Fields

Court Upholds Decision Rendering Insurance Arbitration Provision and Delegation Clause Unenforceable for Failure to File Them with...

Carlton Fields on

In a dispute between Low Desert Empire Pizza (Desert Pizza) and its insurers over alleged mismanagement of claims and unjustifiable cost increases related to a workers’ compensation insurance program, a California appellate...more

Carlton Fields

Missouri Federal Court Remands Action To State Court Because Missouri Law “Reverse Preempts” The New York Convention Based On The...

Carlton Fields on

Foresight Energy, LLC (“Foresight”) brought an action in Missouri state court against various domestic and Bermuda and London market insurers for declaratory judgment, breach of contract and statutory vexatious refusal to pay...more

Carlton Fields

Missouri Court Finds Insurance Contract’s Arbitration Clause Unenforceable As Against Public Policy

Carlton Fields on

This case arose from an accident at the General Motors plant in Kansas City, Kansas, where an electrician employed by Capital Electric Construction Company, Inc. was severely injured due to negligence by Solaris Power...more

Carlton Fields

Missouri Court Holds Arbitration Clause In Insurance Contract Unenforceable As Against Public Policy And Under Governing Law

Carlton Fields on

A Missouri district court recently held a mandatory arbitration provision was unenforceable in an insurance coverage dispute after an electrician was injured on the job and won an uncontested judgment in state court against...more

Carlton Fields

Court Compels Discovery, Awards Sanctions In Dispute Over Whether Reinsurance Arbitration Clause Applies

Carlton Fields on

In 2011, Top’s Personnel entered into a reinsurance agreement with Applied Underwriters Captive Risk Assurance Company (“AUCRA”), and several years later executed a promissory note (“the Note”) in favor of a related entity,...more

Carlton Fields

Alabama Federal Court Finds Cedent Did Not Waive Arbitration, And Orders Reinsurance Dispute To Be Arbitrated

Carlton Fields on

Alabama Municipal Insurance Corp. (“AMIC”), an Alabama non-profit public insurer, brought suit in Alabama federal court against Munich Reinsurance America Inc. (“Munich Re”), alleging breach of a reinsurance contract for...more

Carlton Fields

First Circuit Upholds Arbitrator’s Denial Of Arbitrability Of Reinsurance Agreement, Finding No Manifest Disregard Of The Law

Carlton Fields on

Mountain Valley Property, Inc (MVP) entered into a three-year reinsurance participation agreement with Applied Underwriters Captive Risk Assurance Co. Inc. (AUCRA), which contained a mandatory arbitration clause as well as a...more

Carlton Fields

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

Carlton Fields on

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

Carlton Fields

Louisiana Federal Court Finds Removal Proper As Dispute Could Relate To An Underlying Arbitration Clause In Insurance Policy

Carlton Fields on

In this case, a Louisiana federal court denied a motion for remand of a former machinist’s asbestos-related claim, finding that an English insurer’s removal from state court was appropriate and that the dispute could relate...more

Carlton Fields

Third Circuit Reverses Order Denying Arbitration, Ruling That State Law Prohibiting Arbitration Of Insurance Matters Challenged...

Carlton Fields on

Applied Underwriters Captive Risk Assurance Company appealed from the denial of its motion to compel arbitration in a dispute related to a reinsurance participation contract with South Jersey Sanitation Company. The trial...more

Carlton Fields

Missouri Court Of Appeals Finds Facultative Reinsurance Agreement Between Parties Was Truly A Liability Insurance Contract Which...

Carlton Fields on

Although the parties had entered into what they called a Facultative Reinsurance Agreement (“FRA”), the Missouri Court of Appeals determined the agreement was a contact of indemnity against liability, and thus, pursuant to...more

Carlton Fields

Expect Focus - ONLINE HEALTH CARE: NOT SO FAST Telemedicine Hits A Few Speed Bumps, Volume II, Spring 2015

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In This Issue: - IN THE SPOTLIGHT • Risky Business: Common Cyber Security Risks, Expensive Consequences - LIFE INSURANCE • Ninth Circuit Finds Bonus Indexed Annuity Delivers Exactly...more

Carlton Fields

Southern District Of New York: “If You Want Strict Application Of The Law, Don’t Agree To Arbitration Clauses.”

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A federal judge in the Southern District of New York recently denied a motion to vacate an arbitration award in a reinsurance dispute, scolding the movant for complaining that the arbitrators reached a compromise verdict. The...more

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