Appointment of Substitute Arbitrator Was Proper, 7th Circuit Affirms

CHICAGO - An arbitration award was not nullified by the appointment of a replacement arbitrator after the voluntary withdrawal of the previous arbitrator, the Seventh Circuit U.S. Court of Appeals has affirmed. WellPoint Health Networks Inc., et al. v. John Hancock Life Insurance Co., No. 08-2283 (7th Cir.).

The appellate court ruled Aug. 8 that the arbitration panel's appointment of the replacement arbitrator did not breach the parties' arbitration agreement. The awards directed Wellpoint Health Networks Inc. to pay $26.4 million to John Hancock Life Insurance Co.

In October 1996, WellPoint Health Networks Inc. agreed to buy John Hancock's …