COURT ADHERES TO DECISION DISQUALIFYING COUNSEL FOR OBTAINING INTRA-PANEL EMAILS FROM APPOINTED ARBITRATOR
A federal district court denied Insco’s motion for reconsideration of the court’s order disqualifying Insco’s counsel from further representing it in a pending arbitration because the law firm had improperly procured intra-panel emails from Insco’s appointed arbitrator. On November 1, 2011, we reported that the court had disqualified Insco’s counsel, and, on November 11, 2011, we conveyed that the court had denied Insco’s request to submit a declaration by one of its attorneys in support of its motion for reconsideration. In its order denying the motion for reconsideration, the court reiterated its conclusions that counsel acted inappropriately in obtaining the emails and that the disclosure of the emails tainted the underlying proceedings. Northwestern Nat’l Ins. Co. v. Insco, Ltd., Case No. 11 Civ. 1124 (USDC S.D.N.Y. Nov. 15, 2011), Insco filed a notice of appeal and a motion to stay pending appeal. The district court has entered a rather extensive Order which acknowledges that the disqualification would prejudice Insco but defends its prior decisions and denies the motion to stay, meaning that the arbitration should proceed during the appeal with new counsel for Insco. Northwestern Nat’l Ins. Co. v. Insco, Ltd., Case No. 11 Civ. 1124 (USDC S.D.N.Y. Dec. 6, 2011),
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