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)

15 - 08 - 2023

UNITED STATES 15 August 2023 3131 Veterans Blvd

Jurisdiction United States
Summary

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.

Related topics
222

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.

Arbitrator's competence and separability of the arbitration clause
223

The court discusses whether a certain dispute could be settled by arbitration, and the law applicable to that determination.

Arbitrability (see also Art. V(2) sub ground a. "arbitrability", ¶519)
UNITED STATES 15 August 2023 3131 Veterans Blvd