Federal Judge Vacates Reinsurance Award for Evident Partiality

NEW YORK - A New York federal judge has vacated a reinsurance arbitration award, rendered by a majority of the three-member panel, on the grounds of evident partiality. The court ruled that the umpire and the party-appointed arbitrator for the prevailing party failed to disclose a material conflict of interest that arose due to their involvement in an earlier arbitration that involved a party that was related to the prevailing party, a common witness and common issues. Scandinavian Reinsurance Company Ltd. v. St. Paul Fire & Marine Insurance Co., et al., No. 09-9531 (S.D. N.Y.).

On Feb. 23, Judge Shira …