To Disgorge Or Not Disgorge: Arbitrators’ Authority?
February 10, 2010, 11:22 AM EST
Law360, New York (February 10, 2010, 11:22 AM EST) -- Arbitrators are often authorized to award broad forms of relief in connection with claims arising from a reinsurance contract. A recent decision of the Ninth Circuit Court of Appeals, however, has arguably expanded the arsenal of equitable remedies available to arbitrators in insurance and reinsurance disputes.
In United States Life Ins. Co. v. Superior National Ins. Co., No. 07-55938, 2010 WL 6384 (9th Cir. Jan. 4, 2010), the Ninth Circuit affirmed an arbitration award disgorging the profit that a reinsurer had earned on funds found owing...