1st Cir. Upholds Confirmation of Arbitration Award in Reinsurance Billings Dispute

BOSTON — A federal appeals court has upheld confirmation of an arbitration award stating that National Casualty Co.’s obligation to pay certain reinsurance billings is triggered upon its receipt of the cedents’ billings, proof of loss and reinsurance report.

On March 20, the 1st Circuit U.S. Court of Appeals found that the arbitration clause’s “honorable engagement” provision authorized the arbitrators to grant equitable remedies and that a reservation of rights procedure constitutes such a remedy.

First State Insurance Co. and New England Reinsurance Corp. entered into a number of reinsurance and retrocessional agreements with National Casualty. In 2011, First …