UNITED STATES 28 June 2023 Thumbs Up Race Six

United States District Court, Eastern District of Louisiana, 28 June 2023, CIVIL ACTION NO. 22-2671 SECTION M (4)

(Thumbs Up Race Six, LLC v. ... Read more

United States District Court, Eastern District of Louisiana, 28 June 2023, CIVIL ACTION NO. 22-2671 SECTION M (4)

(Thumbs Up Race Six, LLC v. Independent Specialty Insurance Company, et al.)

28 - 06 - 2023

UNITED STATES 28 June 2023 Thumbs Up Race Six

Jurisdiction United States
Summary

The District Court granted the insurers’ motion to refer a dispute for a Hurricane Ida insurance claim to arbitration. The Court 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 a Convention signatory (the United States) and arising out of a commercial legal relationship. The fourth requirement – that at least one party not be a US citizen – was also met in respect of some of the insurers. Thumbs Up argued, however, that  its claims should not be subject to arbitration because the domestic insurer subscribed to a higher percentage of the policy than did the foreign insurers. The Court rejected this argument, explaining that there was equitable estoppel because the plaintiff’s claims  against the domestic insurer were intertwined with its claims against the foreign insurers.

Related topics
214-216 Field of application
226

Multi-party disputes: The court discusses under which conditions non-signatories are covered by an arbitration agreement entered into by another party.

Third parties (see also Art. I sub F "problems concerning the identity of the respondent", ¶106)
UNITED STATES 28 June 2023 Thumbs Up Race Six