Workers’ Comp Reinsurance Dispute Not Arbitrable Under Nebraska Law, 1st Cir. Affirms

BOSTON — A federal appellate court has upheld a lower court’s denial of Applied Underwriters Inc.’s motion to vacate an arbitrator’s determination that a workers’ compensation reinsurance dispute is not arbitrable under Nebraska law, which the parties agree controls the action.

On July 13, the 1st Circuit U.S. Court of Appeals found the arbitrator did not manifestly disregard the law in determining that the Nebraska Uniform Arbitration Act (NUAA), which bars arbitration of insurance-related disputes, reverse-preempts the Federal Arbitration Act.

Applied Underwriters Inc., Applied Risk Services Inc., and Applied Underwriters Captive Risk Assurance Company Inc. (AUCRA) sold a comprehensive …