The US IA Digest collects in one place important decisions on US international arbitration case law issued since January 1, 2016, compiled and organized into categories that are most relevant and useful to practitioners and other interested parties. The Digest will be updated on a rolling basis as new decisions are issued.
Court granted defendant’s motion to compel arbitration pursuant to the FAA, finding an arbitration agreement exists between the parties and there are no grounds on which to deny enforcement of the agreement. Court rejected plaintiff’s arguments that the arbitration agreement was void because it was made pursuant to a gambling contract which is illegal under Georgia law, and that plaintiff was fraudulently induced to enter the contract, finding both allegations are questions to be resolved by the arbitrator.
Insurance Company of Greater New York v. Kinsale Insurance Company, 1:23-CV-03577-JMF (S.D.N.Y. Nov. 15, 2023)
Court granted defendant’s motion to compel arbitration, although plaintiff was not a signatory to the policy at issue, reasoning that plaintiff was bound by the arbitration clause because plaintiff sought to enforce other provisions of the policy against defendant. Court rejected plaintiff’s argument that the policy contained a “service of suit” provision, finding that the clause applies only when a party seeks to compel arbitration or enforce an arbitration award. Court similarly rejected plaintiff’s argument that defendant waived its right to compel arbitration by delaying its motion to compel until a month after the suit was filed and a few days after removal to federal court. Court stayed the proceedings pending resolution of the arbitration.
Court granted defendant’s cross-motion to compel arbitration of claims relating to the interpretation of a contractual provision that was the subject of previous arbitrations between the same parties that were confirmed in federal court. Court held that the preclusive effect of the previous arbitrations on the pending proceedings was appropriate for an arbitration panel to decide. Court dismissed the case without prejudice, concluding that all of the claims were subject to arbitration.
Court appointed an arbitrator after the parties failed to agree to a neutral and sent the court proposed qualifications for the arbitrator. Court selected an arbitrator who met the proposed qualifications and who it found to be best suited for the case based on her experience in New York.
Jean Lafitte Condominium, LLC v. Certain Underwriters at Lloyd’s London, 2:23-CV-03415-SSV-KWR (E.D. La. Nov. 14, 2023)
Court granted defendants’ motion to compel arbitration and stay the proceedings pending arbitration. Court found that the requirements of the New York Convention were satisfied and that the issue of arbitrability was for the arbitrators given the arbitration clause’s broad language encompassing all matters in difference, including those relating to the arbitrability of any dispute. Court stayed the proceedings and declined to exercise its discretion to dismiss the action, finding that defendants had not adequately justified that a dismissal, rather than a stay, was the proper action.