9th Circuit Upholds $500 Million Arbitration Award

SAN FRANCISCO - The 9th Circuit U.S. Court of Appeals has affirmed confirmation of an arbitration award rendered in favor of five liquidated Superior National Insurance Co. units that were parties to reinsurance contracts issued by U.S. Life Insurance Co. United States Life Insurance Co. v. Superior National Insurance Co., No. 07-55938 (9th Cir.).

The appellate court ruled on Jan. 4 that the arbitrators did not exceed their authority in ordering U.S. Life to pay the Superior National companies $443,515,724 plus interest.

U.S. Life Insurance Co. agreed to reinsure workers' compensation risks covered by five Superior National Insurance Co. units …