Court Tosses Fee Award In Insurance Arbitration Spat

Law360, New York (March 17, 2010, 3:38 PM EDT) -- Ordered to honor Amerisure Mutual Insurance Co.’s $1.5 million reinsurance claim, Global Reinsurance Corporation of America has prevailed on appeal in vacating the arbitration panel’s fee award as a “gross error in law."

The Illinois Court of Appeals for the First Appellate District ruled on Monday that the arbitration panel hearing the reinsurance dispute granted Amerisure roughly $890,000 in attorneys’ fees despite evidence that the arbitration agreement and Illinois statute barred the award.

The arbitration panel awarded the fees pursuant to Section 155 of the Illinois...
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