MOTION TO COMPEL ARBITRATION GRANTED BASED ON ORIGINAL DRAFT OF ARBITRATION CLAUSE RATHER THAN ON FINAL VERSION INCLUDED IN WRITTEN CONTRACT

In deciding a motion to compel arbitration in a dispute over insurance coverage to be provided after Hurricane Ike, a district court in Louisiana found that the parties intended for a draft version of an arbitration clause, rather than the final version of the clause contained in a written contract, to be in effect. Interpreting the draft version, the court found that the narrowly drafted clause that called for arbitration of disputes “as to the amount to be paid under this Policy” encompassed the dispute at issue. A non-signatory insurance adjustor was also allowed to compel arbitration because plaintiff’s claims against that particular defendant referenced or presumed the existence of the agreement and centered on the adjustor’s alleged misconduct in its role as an adjustor for the defendant insurers who were parties to the agreement containing the arbitration clause. Aker Kvaerner IHI v. National Union Fire Insurance Co. of Louisiana, Case No. 10-CV-00278 (W.D. La. Dec. 2, 2013).

This post written by Abigail Kortz.

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