Louisiana Court Disallows Arbitration Clause In Surplus Lines Policy
This is a really narrow issue, but if you are dealing with the enforceability of an arbitration provision in a surplus lines policy, check out Fairway Village Condos. v. Independent Specialty Ins. Co., No. 22-2022 (E.D. La. April 10, 2023). In general, there is law nationally on the enforceability of arbitration provisions in insurance policies – do they violate public policy? In Fairway Village Condos., the court examined the issue in the context of surplus lines policies and held: “[T]he Court cannot enforce the arbitration provision because Louisiana law regards arbitration provisions in insurance contracts as a ‘condition, stipulation, or agreement’ that deprives Louisiana courts of jurisdiction over the action. Defendant’s status as a surplus lines insurer does not bear on the analysis.”
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