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- UNITED STATES 23 February 2023 Bopp
UNITED STATES 23 February 2023 Bopp
United States District Court, Eastern District of Louisiana, 23 February 2023, CIVIL ACTION NO. 23-18 SECTION M (4)
(Patricia S. Bopp, et al. v. ... Read more
United States District Court, Eastern District of Louisiana, 23 February 2023, CIVIL ACTION NO. 23-18 SECTION M (4)
(Patricia S. Bopp, et al. v. Independent Specialty Insurance Company, et al.)
UNITED STATES 23 February 2023 Bopp
The District Court granted a motion to compel arbitration of a Hurricane Ida insurance dispute. The Court first found that the four jurisdictional requirements for compelling arbitration under the New York Convention were met: there was an arbitration agreement in writing, providing for arbitration in the United States, a Convention signatory and concerning a commercial legal relationship, and at least one party was not a US citizen. The plaintiffs argued, however, that the Convention did not apply to their claims against the domestic insurer, which were based on a separate insurance contract. The Court held that equitable estoppel prevented the plaintiffs from objecting to arbitration with the domestic insurer because their claims against all defendants, foreign and domestic, were inextricably intertwined. The Court also rejected the plaintiffs’ argument that the arbitration agreement was invalid because arbitration clauses in insurance contracts are prohibited in Louisiana law, explaining that the New York Convention overrides states law.
The court discusses whether a certain dispute could be settled by arbitration, and the law applicable to that determination.
Multi-party disputes: The court discusses under which conditions non-signatories are covered by an arbitration agreement entered into by another party.