POTENTIAL ARBITRATION AWARD SETOFF NOT JUSTIFICATION FOR A STAY
Absent a “pressing need,” an arbitration action and related court case in one federal district do not justify an indefinite stay of a court case in a different federal district when different reinsurance contracts and different merits are at issue, regardless of whether the parties are the same. In Employers Insurance Company of Wausau v. OneBeacon Insurance Company, a garden-variety breach of contract claim, the Western District of Wisconsin recently entertained, and subsequently rejected, OneBeacon’s motion to stay arguments (1) that a Massachusetts arbitration award could eventually result in a setoff against an expected Wisconsin judgment and (2) that Employers Insurance Company of Wausau’s dawdling conduct in arbitration could be positively impacted by an indefinite stay in court. Holding that a potential setoff is not a “pressing need” and that concerns regarding party conduct should be raised in the forum in which that conduct occurs, the court ultimately granted summary judgment to Employers because OneBeacon had not disputed its liability under the Wisconsin contracts. It also awarded Employers prejudgment interest pursuant to Wisconsin law. Employers Insurance Co. of Wausau v. OneBeacon Insurance Co., Case No. 13-cv-85-bbc (W.D. Wis. July 8, 2013).
This post written by Kyle Whitehead.
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