Arbitrators, Not Court, Should Decide Preclusive Effect of Prior Award, 1st Cir. Affirms

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, the 1st Circuit U.S. Court of Appeals has affirmed.

On Feb. 26, the appellate court explained that the parties’ broadly-worded arbitration agreement encompasses disputes over the preclusive effect of prior arbitrations.

Between 1966 and 1986, OneBeacon had a program known as "Multiple Line Excess Cover" under which it annually entered into reinsurance contracts with various reinsurers. National Casualty Co., Employers Insurance Company of Wausau and Swiss Reinsurance America …