Ky. Court Upholds Ban On Insurance Dispute Arbitration

Law360, New York (July 15, 2013, 7:40 PM EDT) -- A Kentucky appeals court ruled Friday that the Federal Arbitration Act does not preempt a state statute outlawing the arbitration of insurance contract disputes, greenlighting a bedding manufacturer's suit over an allegedly fraudulent employee benefit trust.

A unanimous three-judge panel of the Commonwealth of Kentucky Court of Appeals held that a contract under which United Re AG, a Switzerland-based trust for self-insured benefit plans, allegedly failed to secure excess insurance for Louisville Bedding Co. was an insurance contract that was exempt from compulsory arbitration pursuant to...
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