Reinsurance & Arbitration

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Issue #135, June 2019

Parties to Workers’ Compensation Reinsurance Dispute Agree to Dismissal

The parties in a reinsurance dispute over coverage for underlying workers’ compensation losses have agreed to dismissal of the action following their compliance with an arbitration award and their resolution of the remaining issues.

Lloyd’s Underwriters ask Mass. Federal Judge to Dismiss Century’s Arbitration Demand

Certain Underwriters at Lloyd’s London seek dismissal of Century Indemnity Co.’s petition to compel arbitration of a reinsurance dispute, arguing there is already a pending federal court action that involves the same parties, billings and reinsurance contracts at issue in the petition.

Reinsurer Seeks Arbitration of Police Misconduct Reinsurance Dispute

A reinsurer has moved to compel arbitration of a dispute in which a public entities self-insurance association is demanding $8.9 million in reinsurance for its settlement of police misconduct and excessive force claims brought against two cities.

Pa. Federal Judge Stays Reinsurance Case Pending Appeal

A Pennsylvania federal judge has granted Everest Reinsurance Co.’s motion to stay his order compelling arbitration of a reinsurance dispute pending the reinsurer’s appeal regarding the unsealing of a cedent’s arbitration demand and related documents.

Utica to Appeal Ruling that Reinsurer is Not Required to Pay Defense Expenses

Utica Mutual Insurance Co. is appealing a New York federal judge’s ruling that Munich Reinsurance America Inc. did not wrongly refuse to pay its share of $2.76 million in defense expenses that Utica incurred in connection with underlying asbestos claims filed against its insured.

Insurer Drops Lawsuit Accusing Reinsurers of Refusing to Pay Asbestos Claims

Insurance Company of the State of Pennsylvania has dropped its lawsuit accusing two reinsurers of refusing to pay their share of a settlement of asbestos claims filed against C.F. Braun & Co.

'Destination Arbitration: Court Holds Service-Of-Suit Clause Does Not Conflict With Policy’s Arbitration Requirement'

Daniel G. Enriquez of Carlton Fields discusses Southwest LTC-Management Services, LLC v. Lexington Insurance Co., in which the Eastern District of Texas held that a service-of-suit endorsement did not supersede the arbitration clause in the policy.

Courts May Not Infer Classwide Arbitration from Ambiguous Agreement, High Court Rules

A majority of the U.S. Supreme Court has ruled that courts may not infer from an ambiguous arbitration agreement that the parties have consented to arbitrate on a classwide, rather than individual, basis.

Puerto Rican Insurer Opposes Reinsurers’ Bid to Dismiss Hurricane Lawsuit

A Puerto Rican insurer says its dispute with a group of reinsurers over coverage for two hurricanes is not arbitrable because the arbitration clause in the reinsurance contracts at issue is null and void.

Perspectives: 'So What is an Arbitration "Reasoned Award” Anyway?'

Robert M. Hall discusses selected case law to determine what level or type of “reasoning” in awards is necessary to avoid an award being vacated or remanded for clarification.

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