STORY FROM: Reinsurance & Arbitration

Claim Preclusion Bars 2nd Arbitration in Applied Underwriters Action, Neb. Appeals Court Affirms

OMAHA, Neb. — A dispute involving an Applied Underwriters reinsurance participation agreement is not arbitrable because the issues were already decided in a previous arbitration, a Nebraska appeals court has affirmed.

In a March 17 opinion, the Nebraska Court of Appeals found the question of whether an arbitration agreement concerning or relating to an insurance policy is enforceable under both the FAA and Nebraska’s arbitration laws had already been determined; therefore, claim preclusion bars a second arbitration.

Milan Express Company Inc., a Tennessee corporation, obtained workers’ compensation coverage through AUCRA’s “EquityComp” workers’ compensation program. In 2008, Milan executed the binder ...

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