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Vol.12 - Issue 3

April 17, 2023
 
 

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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