STORY FROM: Reinsurance & Arbitration

Arbitration Clause in Maritime Policy Enforceable, 9th Cir. Affirms; Sends Arbitrability Issue to Arbitrator

SAN FRANCISCO — An arbitration clause in a maritime insurance policy is enforceable under the Federal Arbitration Act, because disputes concerning maritime insurance policies come within federal admiralty jurisdiction, a federal appeals court has affirmed.

On Jan. 16, the 9th Circuit U.S. Court of Appeals further held that the trial court erred in resolving the issue of whether the plaintiffs’ claims against the insurers are arbitrable, finding the parties clearly agreed that an arbitrator, not the court, should resolve the issue of arbitrability.

Montana residents Taunia and Chris Kittler are the sole members of Galilea, LLC, which purchased a 60-foot ...

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