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UNITED STATES 1069
United States District Court, Eastern District of Virginia, Newport News Division, 15 August 2023, Case No. 4:23cv56
(Keller North America, Inc. and ... Read more
United States District Court, Eastern District of Virginia, Newport News Division, 15 August 2023, Case No. 4:23cv56
(Keller North America, Inc. and Hampton Roads Connector Partners v. Certain Underwriters at Lloyd’s OP London and SCOR UK Company Limited)
UNITED STATES 1069
The Court granted the defendant’s motion to compel arbitration of an insurance dispute. It noted that the McCarran-Ferguson Act – which provides that “No Act of Congress shall be construed to invalidate, impair, or supersede any law enacted by any State for the purpose of regulating the business of insurance” – is limited to domestic legislation and does not apply in cases involving arbitration agreements with foreign parties which are subject to the New York Convention and its implementing legislation, the Federal Arbitration Act.
The court discusses the meaning and effect of the referral of the resolution of disputes to arbitration, including: who can ask for referral and when, whether a party has waived its right to request arbitration, the defense that there was no contract at all; whether there was a condition precedent to the commencement of arbitration (e.g. mediation), stay of proceedings v. compelling arbitration, and national procedural specificities such as remand and removal (US), effect of class action. etc.
The court discusses how to interpret the Convention’s requirement that the agreement is not null and void etc., as well as specific cases of invalidity: e.g., lack of consent (misrepresentation, duress, or fraud), vague wording of the arbitral clause; other terms of the contract contradict the intention to arbitrate, etc.
The court discusses whether a certain dispute could be settled by arbitration, and the law applicable to that determination.