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- UNITED STATES 14 December 2020 1010 Common
UNITED STATES 14 December 2020 1010 Common
United States District Court, Eastern District of Louisiana, 14 December 2020, CIVIL ACTION NO. 20-2326 SECTION "B"(5)
(1010 Common, LLC v. Certain Underwriters at Lloyd's, London)
UNITED STATES 14 December 2020 1010 Common
The Court granted the motion to compel arbitration. The Court first examined removal jurisdiction under the New York Convention, then determined that the arbitration clause in the insurance contract between the parties fell under the Convention's purview because it involved at least one non-US party. The Policy's service of suit endorsement did not supersede the arbitration provision. Because the Policy contained an enforceable arbitration agreement, the issue of arbitrability must be referred to the arbitrators.
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 the principle of competence-competence, including whether the parties “intended to have arbitrability decided by an arbitrator”, and the separability of the arbitration agreement from the main contract.