COURT REFUSES CONFIRMATION OF ARBITRATION AWARD TO AVOID MAKING SUBSTANTIVE RULINGS ON CONTRACT ISSUES
A motion to compel arbitration and to stay a case was granted to prevent the court from having to intepret certain reinsurance contracts that contain the arbitration agreements. Petitioner Sun Life Assurance Company of Canada sought the confirmation of an arbitration award. The respondents opposed, arguing that in seeking confirmation of the award, Sun Life also sought substantive rulings regarding the rights and liabilities of the parties that the arbitration panel did not address, namely, whether Sun Life owed interest on the award and whether the parties’ relationship should be terminated. The court agreed with the respondents, finding that to grant the relief Sun Life sought, the court would have to review the contracts and determine substantive rights and liabilities of the parties, thereby improperly usurping the arbitrators’ role. Sun Life Assurance Co. of Canada v. Liberty Mutual Insurance Co., Case No. 09 CV 2133 (USDC S.D. Cal. Dec. 9, 2009).
This post written by Brian Perryman.
