STORY FROM: Reinsurance & Arbitration

Texas Federal Judge Sends Coverage Dispute to Arbitrators; Says ‘Law and Practice' Clause Controls

HOUSTON — Arbitrators must decide whether a coverage dispute between Gemini Insurance Co. and certain Lloyd’s of London underwriters is arbitrable, a Texas federal judge has ruled, explaining that the policy’s arbitration clause overrides its service of suit clause.

On April 13, Judge Lee H. Rosenthal of the U.S. District Court for the Southern District of Texas explained that the policy’s “Law and Practice Clause,” which provides for arbitration in England, encompasses all disputes except those seeking enforcement of arbitration awards.

Gemini Insurance Company, issued a maritime liability insurance policy to Galveston Bay Energy LLC. Lloyd’s Underwriters underwrote another ...

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