Arbitrator Did Not Exceed Powers by Siding With Insurer in Coverage Dispute, 5th Cir. Affirms

NEW ORLEANS — An arbitrator did not exceed his powers by dismissing an insurance coverage arbitration after finding that the policyholder’s arbitration demand was untimely, a federal appeals court has affirmed, upholding confirmation of the arbitration award rendered in favor of the insurer.

On June 3, the 5th Circuit U.S. Court of Appeals found the arbitrator did not err in interpreting certain ambiguities in the policy in ACE Insurance Co.’s favor. The appellate court further found the arbitrator did not improperly refuse to consider evidence that the policyholder failed to timely present.

On Aug. 15, 2010, the vessel “Sweet Dreams” …