UNITED STATES 2 February 2021 Georgetown Home Owners Association

United States District Court, Middle District of Louisiana, 2 February 2021, CIVIL ACTION NO. 20-102-JWD-SDJ
(Georgetown Home Owners Association, Inc. v. Certain Underwriters at Lloyd's, London, Severally Subscribing to Policy Number AMR-60507, et al.)

02 - 02 - 2021

UNITED STATES 2 February 2021 Georgetown Home Owners Association

Jurisdiction United States
Summary

The District Court referred a dispute to arbitration in accordance with the arbitration clause in the parties' agreement, holding that all the jurisdictional requirements for compelling arbitration under the New York Convention were met: there was an arbitration agreement in writing within the meaning of the Convention, which provided for arbitration in the territory of a Convention signatory and arose out of a legal relationship, whether contractual or not, which was considered commercial. The fourth requirement – whether at least one party to the agreement was not an American citizen, or the commercial relationship had some reasonable relation with one or more foreign states – was disputed. The Court held that although the defendants had not provided a complete list of all the underwriters participating in the policy, it appeared from the record that the relationship was not entirely between citizens of the United States. The Court dismissed the plaintiff's claim that the Convention did not apply because it was reverse-preempted by Louisiana state law on insurance, which allegedly applied by operation of the McCarran-Ferguson Act, which commits the regulation of insurance to state law. The arguments that the defendants could not compel arbitration because the arbitration provision was unenforceable as a contract of adhesion, and that the dispute did not fall within the scope of the arbitration clause, were also denied.

Related topics
201

The court discusses whether the dispute falls within the wording of the arbitration agreement; and whether claims in tort fall within the scope of the agreement.

Scope of arbitration agreement
217

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.

Referral to arbitration in general
220

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.

"Null and void", etc.
UNITED STATES 2 February 2021 Georgetown Home Owners Association