STORY FROM: Reinsurance & Arbitration

State Law Does Not Preempt Convention, La. Federal Judge Rules

NEW ORLEANS — State law prohibiting arbitration of insurance disputes does not preempt the Convention on the Recognition and Enforcement of Foreign Arbitral Awards, a Louisiana federal judge has ruled, explaining that while the McCarran-Ferguson Act applies generally to federal statutes, it does not apply to treaties such as the Convention.

The 5th Circuit U.S. Court of Appeals, which denied the plaintiff’s appeal on Nov. 19 on the basis that denial of a motion to remand is not appealable unless the district court certifies the issue, which had not occurred in the instant case.

Louis C. Pannagl purchased a windstorm ...

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