STORY FROM: Reinsurance & Arbitration
State Law Does Not Preempt N.Y. Convention, 5th Circuit Rules
September 30, 2008
NEW ORLEANS - Louisiana state law does not reverse-preempt the Convention on the Recognition and Enforcement of Foreign Arbitral Awards and therefore does not bar London reinsurers from arbitrating a contract dispute, a federal appellate court has ruled. Safety National Casualty Corp. v. Certain Underwriters at Lloyd's, London, et al., No. 06-30262 (5th Cir.).
The 5th Circuit U.S. Court of Appeals on Sept. 29 ruled that in enacting the McCarran-Ferguson Act, Congress did not intend "to restrict the United States' ability to negotiate and implement a treaty that might affect some aspect of international insurance agreements in the same way ...