STORY FROM: Reinsurance & Arbitration
Federal Judge Vacates $6 Million Award, Calls It 'Irrational'
October 7, 2009
PHILADELPHIA - A $6 million arbitration award issued in favor of Platinum Underwriters Bermuda Ltd. has been deemed "irrational" and vacated by a Pennsylvania federal judge, who said it eliminates an "essential" provision in a 2003 reinsurance contract. PMA Capital Insurance Co. v. Platinum Underwriters Bermuda Ltd., No. 09-84 (E.D. Pa.).
In a Sept. 17 order, Judge Paul S. Diamond of the U.S. District Court for the Eastern District of Pennsylvania further ruled that the award cannot be derived from the contract at issue or the parties' submissions.
St. Paul Re originally reinsured PMA Capital Insurance Co. for the ...