
UNITED STATES 15 December 2022 Upper Room Bible Church
United States District Court, Eastern District of Louisiana, 15 December 2022, CIVIL ACTION No. 22-3490 SECTION I
(Upper Room Bible Church, Inc. v. ... Read more
United States District Court, Eastern District of Louisiana, 15 December 2022, CIVIL ACTION No. 22-3490 SECTION I
(Upper Room Bible Church, Inc. v. Sedgwick Delegated Authority, et al.)
UNITED STATES 15 December 2022 Upper Room Bible Church
The District Court heard Upper Room’s application to compel arbitration of insurance claims for damages caused by Hurricane Ida and Tropical Storm Nicholas. The Court found first that Upper Room’s claims against Sedgwick failed, because Sedgwick was not a party to the insurance policy and the Court could not find on the facts that there was privity of contract between Sedgwick and Upper Room, or that Upper Room was a third-party beneficiary of any contract between Sedgwick and the signatory insurers. The Court, however, granted the petition to compel arbitration of Upper Room’s claims against the other defendants, since it found that the four jurisdictional requirements for compelling arbitration under the New York Convention were met, as the insurance policy contained an arbitration agreement in writing, providing for arbitration in a Convention State (the United States) and arising out of a commercial dispute, and at least one of the parties was not a US citizen. The Court also referred to Fifth Circuit case law holding that the Convention supersedes Louisiana law prohibiting arbitration agreements in domestic insurance policies.
The court discusses whether a certain dispute could be settled by arbitration, and the law applicable to that determination.