Mich. Federal Judge Confirms $14 Million Reinsurance Arbitration Award, Finds No Evident Partiality

DETROIT — A Michigan federal judge has confirmed a $14 million arbitration award issued in favor of a cedent seeking indemnification for asbestos losses, ruling that Everest Reinsurance Co. failed to prove that the umpire acted with evident partiality.

In a March 18 order, Judge Matthew F. Leitman of the U.S. District Court for the Eastern District of Michigan further held that the arbitration panel did not exceed its powers in ruling that the reinsurance treaties’ asbestos exclusion barred coverage for Amerisure Mutual Insurance Co.’s claims.

In 1979, Everest issued Amerisure a Direct Access Reinsurance Treaty, in effect from …