State Statutes May Stymie Arbitration Of R&W Disputes
Law360, New York (November 20, 2015, 10:39 AM EST) -- Michael J. Gill
Alexandra L. Newman There are good reasons why both an insured and an insurer would agree to include a mandatory arbitration provision in a representations and warranties (R&W) insurance policy. These policies provide coverage for breaches of contractual representations and warranties made by a seller in an M&A transaction. Because of the nature of the underlying transactions, coverage disputes arising from R&W insurance require the trier of fact to interpret sophisticated transaction documents and sort through a complex damages analysis. On top of that, the trier of fact must determine whether, and to what extent, a relatively new...
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