Judge Sends Dispute Involving Risk Retention Group to Arbitration

NEW ORLEANS - A Louisiana federal judge has ordered arbitration of an insurance dispute involving a risk retention group, ruling that prohibiting arbitration under state law will adversely affect the group's operations and contravene the Louisiana Risk Retention Act. Central Claims Service Inc. v. Claim Professionals Liability Insurance Co., No. 10-4672

On Sept. 2, Judge Ivan L.R. Lemelle of the U.S. District Court for the Eastern District of Louisiana held that Louisiana Revised Statute 22:868, which would invalidate the arbitration agreements at issue, impairs the "formation or operation" of risk retention groups and is therefore preempted by the LLRA …