STORY FROM: Reinsurance & Arbitration
Federal Judge Confirms $2 Million Arbitration Award
April 9, 2009
NEW YORK - A New York federal judge has confirmed an arbitration award that requires Argonaut Insurance Co. to pay Global Reinsurance Corp. $2 million in retrocessional balances, ruling that the arbitration panel did not act in manifest disregard of the law. Global Reinsurance Corporation-U.S. Branch v. Argonaut Insurance Co., No. 07-7514 (S.D. N.Y.).
In a March 23 order, Judge William H. Pauley rejected Argonaut's assertion that the arbitration panel did not ignore the notice, loss occurrence and follow the fortunes provisions at issue.
Global and its predecessors reinsured Home Insurance Co. under various treaties. Argonaut, in turn, reinsured a ...