
UNITED STATES 3 January 2023 Certain Underwriters v. Belmont Commons
United States District Court, Eastern District of Louisiana, 3 January 2023, CIVIL ACTION NO. 2:22-cv-3874; 2:22-cv-3876(Certain Underwriters At Lloyd’s, London Severally Subscribing ... Read more
United States District Court, Eastern District of Louisiana, 3 January 2023, CIVIL ACTION NO. 2:22-cv-3874; 2:22-cv-3876(Certain Underwriters At Lloyd’s, London Severally Subscribing to Certificate NO. AMR-73525, et al. v. Belmont Commons L.L.C. d/b/a 925 Common and Belmont Delaware L.L.C., et al.)
UNITED STATES 3 January 2023 Certain Underwriters v. Belmont Commons
In an action seeking damages for Hurricane Ida damages, the Court found that three of the four jurisdictional requirements for compelling arbitration under the New York Convention were undisputedly met: the insurance policy between the parties contained a written agreement to arbitrate, providing for arbitration in a Convention signatory (the United States) and arising out of a commercial legal relationship. Belmont argued, however, that the fourth criterium – that at least one of the parties not be a US citizen – was not satisfied, because Belmont sought to litigate only with the nine domestic insurers, and not with the two international insurers. The Court explained that equitable estoppel prevented Belmont from objecting to arbitration as to only the domestic defendants. The Fifth Circuit, it explained, has held that equitable estoppel applies when signatory to the contract containing an arbitration clause raises allegations of substantially interdependent and concerted misconduct by both the nonsignatories and one or more of the signatories to the contract, as was the case here. A first motion to reconsider this order was dismissed on 19 February 2023; a second motion to reconsider was dismissed on 23 March 2023.
Multi-party disputes: The court discusses under which conditions non-signatories are covered by an arbitration agreement entered into by another party.