Judge Refuses to Appoint Replacement Arbitrator for Insco Ltd.

NEW YORK - A New York federal judge has denied a cedent's request to appoint a party arbitrator for a reinsurer, ruling that the reinsurer was entitled to appoint an arbitrator to replace the one that resigned for partiality reasons. Northwestern National Insurance Co. v. Insco Ltd., No. 11-1124 (S.D. N.Y.).

On May 12, Judge Shira A. Scheindlin of the U.S. District Court for the Southern District of New York ruled that depriving Insco Ltd. of its right to appoint a replacement arbitrator would contravene the parties' original intent that each party be permitted one party-appointed arbitrator.

In 1978, …