Insurers Cleared To Arbitrate Hurricane Harvey Coverage Row

Law360 (May 29, 2020, 7:42 PM EDT) -- A Texas federal judge on Friday granted a bid by a group of Lloyd's of London insurers to arbitrate a property owner's dispute over $1 million in Hurricane Harvey damage, saying the policy doesn't let the court override the arbitrator's power to decide whether arbitration is valid.

U.S. District Judge Charles Eskridge's Friday order also said that property owner 5556 Gasmer Management LLC's misrepresentation claims against two insurance brokers, AmRisc LLC and U.S. Risk LLC, didn't require him to interpret the underlying policy. Judge Eskridge concluded by staying the claims against the insurers and brokers until arbitral proceedings conclude.

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