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Chaffetz Lindsey Team Wins Motion to Compel Arbitration of a Reinsurance Dispute Under FAA §3

Where Advocacy Meets Business

February 2017 – A Chaffetz Lindsey team consisting of partners Cecilia Moss and Peter Chaffetz, and associate Karen C. Baswell, obtained an order from a New York federal court granting a motion to stay litigation and compel arbitration under the Federal Arbitration Act, 9 U.S.C. § 3, filed on behalf of our client, Lexington Insurance Company.  The decision is HDI Global SE v. Lexington Insurance Company, No. 16-CV-07241 (CM)(AJP), — F. Supp. 3d —-, 2017 WL 699818 (Feb. 7, 20017 S.D.N.Y.).

Lexington initially commenced arbitration seeking reinsurance payments from HDI Global SE pursuant to the arbitration clause in a facultative reinsurance certificate between the parties.  HDI responded by filing suit, seeking a declaration that the facultative certificate was void for lack of mutual assent, and claiming that this issue of contract formation should be decided by the court.

The Chaffetz Lindsey team argued that there was no question of contract formation, and that HDI’s claims were subject to arbitration under the arbitration clause.  The court agreed, and granted the motion to stay the litigation and compel arbitration.

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