FEDERAL COURT CONFIRMS ARBITRATION AWARD IN DISPUTE BETWEEN REINSURER AND INSURERS BUT ORDERS ARBITRATION AWARD UNSEALED
Reinsurer AXA and insurers New Hampshire Insurance Company, American Home Insurance Company, and National Union Fire Insurance Company arbitrated a dispute over reinsurance coverage of primary policies that had been underwritten by AIG’s Energy Division in 1996/1997 and 1997/1998. The arbitration was only commenced after years of contentious litigation over coverage-related issues. The arbitration panel issued an award, largely in favor of AXA. AXA petitioned to have the arbitration award confirmed under the FAA. The insurers stipulated to the award’s confirmation, but both sides asked the court to keep the award out of the public court record. When the award was filed with the Petition to confirm the award, the court granted the request of the parties to seal the award. In the order confirming the award, however, the court denied the request to keep the award sealed, without any discussion of the reasons for its change of position, and directed the clerk to unseal the award, which is now public. In re AXA Versicherung AG, Case No. 12-6009 (USDC S.D.N.Y. Sept. 6, 2012).
This post written by Ben Seessel.
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