Quoting from one of its own 2004 opinions, the Fifth Circuit has elaborated upon the standard for finding that an arbitration award is in manifest disregard of law, holding that such a finding requires proof of two elements: (1) that the legal error must have been obvious and capable of being readily and instantly perceived by the average person qualified to serve as an arbitrator; and (2) that the award results in a significant injustice. The first element includes a need to demonstrate that the arbitrator appreciated the existence of a clearly governing principle of law, but decided to ignore or pay no attention to such principle. The arbitration hearing at issue was not reported. The Court concluded that “[h]aving failed to secure a record of the arbitration proceedings, and without any evidence that the arbitral panel was aware of the Fifth Circuit standard [for awarding attorneys' fees], OneBeacon cannot make this showing, so its claim that the award was in 'manifest disregard' of the law fails ….” OneBeacon America Ins. Co. v. Turner, Case No. 06-20302 (5th Cir. Oct. 30, 2006).
Mealey's 14th Annual Insurance Insolvency & Reinsurance Roundtable
Information is now available regarding Mealey's 14th Annual Insurance Insolvency & Reinsurance Roundtable, to be held April 25-28, 2007, at The Fairmont Scottsdale Princess in Phoenix, Arizona.
Mealey’s 14th Annual Insurance Insolvency & Reinsurance Roundtable
Information is now available regarding Mealey's 14th Annual Insurance Insolvency & Reinsurance Roundtable, to be held April 25-28, 2007, at The Fairmont Scottsdale Princess in Phoenix, Arizona.
UK Court of Appeal discusses appeal process in context of reinsurance arbitration
The UK Court of Appeals has issued an opinion that discusses the appeal process in the UK, in the context of the appeal of an arbitration award in a reinsurance dispute. The reinsurance is irrelevant to this decision, which is interesting if one wishes to see how the UK appeal process works. CGU International Ins. PLC v. AstraZeneca Ins. Co., [2006] EWCA Civ 1340 (Oct. 16, 2006).
Court refuses to imply follow the fortunes doctrine into reinsurance agreements
In a matter involving the reinsurance of asbestos-related risks, a District Court has followed what it considered to be both the majority rule, and the better reasoned path, declining to imply the follow the fortunes doctrine into reinsurance agreements, where the facultative reinsurance agreements did not contain such a provision. The Court then denied summary judgment to the reinsured, finding that there were disputed issues of material fact as to whether certain excess insurance had been exhausted, a requirement for the applicability of the reinsurance, and whether an exclusion applied. The American Ins. Co. v. American Re-Ins. Co., Case No. 05-01218 (USDC N.D. Cal. Nov. 27, 2006). Shortly after this opinion was entered, the parties notified the Court that they had reached a settlement of their disputes.