Mass. Federal Judge Confirms Arbitration Award in Light of 1st Circuit’s ‘Honorable Engagement’ Ruling

BOSTON — A Massachusetts federal judge has confirmed a final arbitration award in a reinsurance contract dispute, ruling that the arbitrators did not exceed the scope of their authority in crafting the award because they were interpreting the contract in doing so.

In a March 25 order, Judge Indira Talwani deferred to the 1st Circuit’s recent ruling that “an honorable engagement provision empowers arbitrators to grant forms of relief, such as equitable remedies, not explicitly mentioned in the underlying agreement.”

First State Insurance Co. and New England Reinsurance Corp. (First State, collectively) entered into several reinsurance agreements with Nationwide Mutual …