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
ad

Read these next

Category

Supreme Court Limits California’s PAGA Law on Employment Claims, Preempting It in Part under the Federal Arbitration Act

This article was first published in CPR Speaks, The Blog of the CPR Institute, here. The U.S. Supreme Court ruled this morning that employers may require their workers to arbitrate...

By Arjan Bir Singh Sodhi, Russ Bleemer
Category

Strategies to Collect International Arbitration Awards

This article first appeared on Global Dispute Resolution Insights, here. Strategies to Collect International Arbitration Awards One of the problems that parties to international arbitration face is that the opposing...

By Craig R. Tractenberg, Sarah Biser
Category

The U.S. Supreme Court Finally Will Review (and May Bury) PAGA’s Anti-Arbitration Rule

This article was first published on Proskauer Blog, here. While the California Supreme Court has repeatedly upheld arbitration agreements with class action waivers (as they must under the Federal Arbitration...

By Anthony J. Oncidi, Philippe A. Lebel

Find an Arbitrator

X
X
X