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Administrative services agreement provides for permissive arbitration; plaintiff permitted to amend complaint

Jorden Burt LLP
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USA
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December 22 2010

PCH Mutual Insurance Company (“PCH”), a risk retention group providing insurance to assisted living facilities, entered into an Administrative Services Agreement with Casualty & Surety, Inc. (“CSI”), a wholesale insurance broker and program manager

Insureds ordered to arbitrate notwithstanding allegedly conflicting contractual provisions

Jorden Burt LLP
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USA
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December 9 2010

AIG insureds were directed to arbitrate their breach of contract, tortious breach of the covenant of good faith and fair dealing, unfair competition, and other causes of action based on AIG's alleged misconduct in denying their claims for benefits

Arbitrator disqualification

Jorden Burt LLP
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USA
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April 28 2011

O’Dowd v. Hardy, No. G04308 (Cal. Ct. App. Feb. 24, 2011) (defendant’s counsel’s letter to arbitrator, copied to plaintiff’s counsel, containing negative statements about plaintiff did not warrant arbitrator disqualification

Timeliness issues

Jorden Burt LLP
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USA
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April 28 2011

Century Indem. Co. v. Clearwater Ins. Co., Case No. 11-1038 (USDC S.D.N.Y. Mar. 30, 2011) (confirming arbitration award because respondent failed to timely move to vacate, modify, or correct the award and finding no other basis for vacating the award

Class arbitration

Jorden Burt LLP
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USA
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April 28 2011

Sutter v. Oxford Health Plans, LLC, Case No. 10-04903 (USDC D.N.J. Feb. 25, 2011) (class arbitration was still required following the Supreme Court’s Stolt-Nielson decision, notwithstanding the omission of the words “class action” in the parties’ arbitration agreement because the arbitrator had determined that the agreement unambiguously expressed the parties’ intent to authorize class arbitration

Interim awards

Jorden Burt LLP
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USA
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April 28 2011

Draeger Safety Diagnostics, Inc. v. New Horizon Interlock, Inc., Case No. 11-mc-50160 (USDC E.D. Mich. Feb. 14, 2011) (confirming interim award for emergency relief ordering defendant to return records, data, and reports; claim was ripe because the plaintiff was likely to be harmed absent confirmation; court lacked subject matter jurisdiction to confirm non-final award of fees because the claim was not ripe

Exceeding Authority; Manifest Disregard for the Law

Jorden Burt LLP
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USA
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April 28 2011

CCent. Mont. Rail v. BNSF Ry. Co., No. 05-00116 (9th Cir. Mar. 18, 2011) (affirming the district court’s confirmation of an arbitration award because the conditions for vacatur were not met; the arbitrators had not exceeded their authority nor manifestly disregarded the law

Notice issues

Jorden Burt LLP
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USA
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April 28 2011

Selective Ins. Co. v. Coach Leasing, Inc., No. A-4007-06T2 (N.J. Super. Ct. App. Div. June 16, 2008) (reversing orders vacating arbitration awards and remanding for entry of judgment enforcing awards; notifying defendant’s third-party administrator of the arbitration was sufficient notice under the parties’ agreement and New Jersey statute

Supreme Court denies review of case challenging party-selected arbitrator

Jorden Burt LLP
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USA
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June 20 2011

The Supreme Court denied certiorari in Trustmark Insurance Co. v. John Hancock Life Insurance Co., a case involving a challenge to a party-selected arbitrator in a tripartite arbitration (where each party selects an arbitrator, and the two arbitrators select an umpire

Court compels arbitration and refuses to disqualify a party’s selected arbitrator

Jorden Burt LLP
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USA
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July 6 2011

A federal district court compelled arbitration and refused to disqualify a party’s selected arbitrator, notwithstanding that the arbitrator was a former employee and consultant of the objecting party’s parent company

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