High Court Waves Off Insurance Preemption Suit

Law360, New York (October 4, 2010, 4:32 PM EDT) -- In a move that could help foreign insurers compel arbitration even when state laws prohibit it, the U.S. Supreme Court on Monday declined to hear a case on whether state laws governing arbitration are preempted by the international treaty on the subject.

The high court's decision not to take up the case cements the ruling of the U.S. Court of Appeals for the Fifth Circuit. That court determined a Louisiana state law barring arbitration in insurance contracts is essentially preempted by the treaty, which generally requires...
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