
UNITED STATES 15 August 2023 3131 Veterans Blvd
United States District Court, Southern District of New York, 15 August 2023, No. 22-CV-9849 (LAP)
(Certain Underwriters at Lloyds, London, et al. v. ... Read more
United States District Court, Southern District of New York, 15 August 2023, No. 22-CV-9849 (LAP)
(Certain Underwriters at Lloyds, London, et al. v. 3131 Veterans Blvd LLC)
UNITED STATES 15 August 2023 3131 Veterans Blvd
The District Court denied the motion to compel arbitration of a Hurricane Ida insurance dispute. In the absence of a clear and unmistakable intention of the parties to refer issues of arbitrability to the arbitrators, the Court decided itself the question of whether the parties were bound by a valid arbitration agreement and the matter should accordingly be referred to arbitration under the New York Convention. The Court explained that according to the McCarran-Ferguson Act (MFA), a federal statute that does not specifically regulate the business of insurance does not supersede state law enacted for the purpose of regulating the business of insurance. Since the Second Circuit has held that the MFA preempts the New York Convention, the Convention did not prevail here over the Louisiana statute specifically regulating insurance and prohibiting arbitration clauses in insurance contracts. Consequently, the arbitration clause was unenforceable.
The court discusses the principle of competence-competence, including whether the parties “intended to have arbitrability decided by an arbitrator”, and the separability of the arbitration agreement from the main contract.
The court discusses whether a certain dispute could be settled by arbitration, and the law applicable to that determination.