District of Puerto Rico Holds Article II of the Convention on Foreign Arbitral Awards Preempts the……

In a dispute over whether an international insurance policy provided coverage for losses resulting from a fire that destroyed the insured property, the U.S. District Court for the District of Puerto Rico determined that the Convention on the Recognition and Enforcement of Foreign Arbitral Awards and chapter 2 of the Federal Arbitration Act (FAA) preempt the McCarran-Ferguson Act. The plaintiff had purchased from several Lloyd’s syndicates an insurance policy containing an arbitration provision and providing coverage for property located in Puerto Rico. The plaintiff argued that the McCarran-Ferguson Act “reverse-preempted” the Convention and the FAA such that Puerto Rican insurance law controlled whether the parties’ dispute was arbitrable. The plaintiff further argued, and the insurers did not dispute, that the Puerto Rico Insurance Code prohibits insurance policies from requiring arbitration of disputes. The insurers, however, argued that the Convention and FAA preempted Puerto Rico’s Insurance Code, and therefore the arbitration provision must be enforced……

Read the complete story here.

Featured Arbitrators

ad
View all

Read these next

Category

Why You Should Consider California as the Seat for Your Arbitration

As all the parties to an arbitration know, choosing the seat of the arbitration is extremely important because the law of the seat dictates key elements of the arbitral process,...

By Colin Rule, Indraneel Gunjal
Category

Arbitration Conversation No. 44: Morenike Obi-Farinde, Founder, ODRAfrica Network

In this episode of the Arbitration Conversation Amy interviews Morenike Obi-Farinde, Founder of the ODRAfrica Network and managing partner of the law firm of ADIGUN OGUNSEITAN & CO. in Lagos,...

By Morenike Obi-Farinde, Amy Schmitz
Category

Separating the People from the Problem – Colin Rule and the Rise of Online Dispute Resolution

When the Apple II was released in 1977, it was among the first computers marketed and mass-produced for businesses and individuals alike. Apple would later adopt the slogan “The computer...

By Colin Rule

Find an Arbitrator

X
X
X