Trial Court Required to Appoint Umpire to Oversee Reinsurance Arbitration, 2nd Cir. Rules

NEW YORK — A New York trial court is required to grant Odyssey Reinsurance Co.’s request to appoint an umpire to oversee a retrocessional dispute because there has been a breakdown in the appointment process that justifies court intervention, a federal appeals court has ruled.

In an Aug. 26 summary order, the 2nd Circuit U.S. Court of Appeals found the trial court erred in holding that it was not authorized under the Federal Arbitration Act to intervene in the parties’ umpire selection process.

In October 1998, Odyssey Re issued Legion Insurance Co. a Casualty Second Excess of Loss Reinsurance Contract, …