District Court’s Interlocutory Review of Ongoing Arbitration was Improper, 6th Circuit Rules

DETROIT — A federal district court erred in staying an ongoing reinsurance arbitration, the 6th Circuit U.S. Court of Appeals has ruled, explaining that under the Federal Arbitration Act, parties to an arbitration generally may not challenge the fairness of the proceedings or the partiality of the arbitrators until the conclusion of the arbitration and the issuance of a final award.

In the April 9 opinion, the appellate court noted that several circuit courts have interpreted the FAA to preclude the interlocutory review of arbitration proceedings and decisions.

National Union Fire Insurance Company of Pittsburgh agreed to reinsure workers’ compensation …