Court, Not Arbitrators, Should Decide Timeliness of Arbitration Demand, NY. Appeals Court Rules

NEW YORK — Courts, rather than arbitrators, should decide whether a demand for arbitration is timely under New York law, a New York appellate court has ruled.

On March 11, the New York Appellate Division, First Department, found the arbitration clause in the reinsurance contract at issue states that “the arbitration laws of New York State” govern the parties’ arbitration, therefore “all controversies, including issues of timeliness, are subjects for arbitration.”

Continental Insurance Company Inc. sought reinsurance coverage for asbestos-related claims brought against its insured, J.T. Thorpe. Continental demanded arbitration and ROM Reinsurance Management Corp. asked the New York …