DISTRICT COURT DENIES PRELIMINARY INJUNCTION TO ENJOIN EXCESS INSURANCE COVERAGE ARBITRATION IN UK
A district court has denied a motion for preliminary injunction, which would have enjoined an excess insurer from seeking to arbitrate coverage disputes under an excess insurance policy in London, England, as required by the excess policy. The Court rejected the contention that Arkansas law, which would have voided the arbitration provision, applied to the dispute, given a New York choice of law provision and the applicability of the Convention on the Recognition and Enforcement of Arbitral Awards. Considering the requirements for a preliminary injunction, and the potential application of the McCarran-Ferguson Act, the court held that a preliminary injunction was not warranted, based in part upon principles of international comity. Murphy Oil USA, Inc. v. SR Business Ins. Company Ltd., Case No. 07-1071 (USDC W.D. Ark. Sept. 20, 2007).
