Arbitrators Should Determine Validity of Arbitration Agreement

NEW YORK - The highest court in New York has affirmed that arbitrators, not the court, should determine the scope and validity of an arbitration agreement in a contingency cost agreement that insured a life settlement company. Life Receivables Trust v. Goshawk Syndicate 102 at Lloyd's, No. 138 (N.Y. App. Ct.).

On May 4, the New York Court of Appeals agreed with two lower courts that the parties' agreement to arbitrate the validity of their arbitration agreement "is supported by clear and unmistakable evidence" and should be enforced.

Life Receivables Trust owns a portfolio of life insurance policies originally bought …