Buildings' Owner Must Arbitrate $1.5M Suit Over Rain Damage

By Caroline Simson (December 14, 2020, 9:28 PM EST) -- A federal judge in New Orleans on Monday ordered the owner of properties that were damaged during torrential rains in July 2019 to arbitrate a $1.55 million claim against its insurers, rejecting arguments that an arbitration clause had been negated by competing language in the contract.

Judge Ivan L.R. Lemelle concluded there was no merit to 1010 Common LLC's argument that a provision in the underlying contract, referred to as the service of suit endorsement, had overridden the arbitration clause, under which the parties agreed that disputes arising under the pact would be sent to arbitration in New York.

1010 Common...

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