Analysis

9th Circ. Moves Needle In Favor Of Foreign Insurers

By Caroline Simson (August 16, 2021, 10:28 PM EDT) -- The Ninth Circuit decided last week that Lloyd's of London underwriters could force arbitration of a dispute over coverage for property damage caused by Hurricane Harvey, providing a modicum of certainty to foreign insurers looking to enforce arbitration clauses despite some lingering confusion on the issue.

The circuit court ruled Aug. 12 that the Lloyd's underwriters could enforce an arbitration clause in an insurance contract with the owner and operator of a Texas townhouse complex, concluding for the first time that an international treaty obligating courts to enforce international arbitration agreements is not trumped by state law barring arbitration of insurance...

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