Arbitration Treaty Trumps La. Insurance Law: 5th Circ.

Law360, New York (November 10, 2009, 5:13 PM EST) -- The federal McCarran-Ferguson Act does not authorize a Louisiana state law prohibiting arbitration of insurance contract disputes to reverse-preempt the so-called New York Convention, the U.S. Court of Appeals for the Fifth Circuit has ruled.

A majority of the full Fifth Circuit ruled Monday that the state's Revised Statutes, which bar arbitration clauses in insurance policies, are superseded by the Convention on the Recognition and Enforcement of Foreign Arbitral Awards — a 1959 United Nations treaty that requires courts of contracting nations to recognize private agreements...
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