Texas Federal Judge Vacates Reinsurance Arbitration Award, Finds Arbitrator Exceeded Power

HOUSTON — A Texas federal judge has vacated an arbitration award issued in a dispute involving reinsurance agreements issued by three captive insurers, finding the Houston arbitrator erred in retaining jurisdiction over the dispute despite the parties’ agreement to submit disputes to an Anguillian arbitrator.

In a March 31 order, Judge Gray Miller of the U.S. District Court for the Southern District of Texas further ruled that the arbitrator exceeded his power by failing to apply the agreed-upon International Chamber of Commerce rules to the dispute.

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