Arbitrators, Not Court, Should Decide Arbitrability Issue, Mass. Federal Judge Rules

BOSTON — An arbitration panel, rather than the court, should decide whether OneBeacon American Insurance Co. (NYSE: OB) is precluded from arbitrating a reinsurance coverage dispute with Employers Insurance Company of Wausau, a Massachusetts federal judge has ruled.

In the July 1 opinion, Judge Denise J. Casper of the U.S. District Court for the District of Massachusetts also denied OneBeacon’s motion to disqualify one of the umpire nominees, explaining that "prior to issuance of an award, a court may not make inquiry into an arbitrator's capacity to serve based on a challenge that a given arbitrator is biased."

Between 1966 …