Arbitrator Exceeded Powers by Retaining Jurisdiction Over Reinsurance Dispute, 5th Cir. Affirms

NEW ORLEANS — A Texas federal court properly vacated an arbitration award issued in a dispute involving reinsurance contracts issued by three captive insurers, a federal appeals court has ruled, finding the arbitrator erred in retaining jurisdiction over the dispute despite the parties’ agreement to submit disputes to an Anguillian arbitrator.

In an April 7 opinion, the 5th Circuit U.S. Court of Appeals further found the arbitrator exceeded his power by failing to apply the agreed-upon International Chamber of Commerce rules to the dispute.

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