X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

OPINION AND ORDER The petitioner, Endurance Specialty Insurance Limited (“Endurance”) brought this action in the New York State Supreme Court, New York County, against respondent Horseshoe Re Limited, which acts on behalf of and for the benefit of Separate Accounts HS0083 and HS0084 (“Horseshoe”). Endurance petitioned the state court to remove the presiding arbitrator in Endurance’s ongoing arbitration proceedings with Horseshoe in Bermuda. Endurance alleged that the arbitrator was biased. Horseshoe removed the case to this Court, asserting federal subject-matter jurisdiction and removal authority pursuant to the Convention on the Recognition and Enforcement of Foreign Arbitral Awards of June 10, 1958, 21 U.S.T. 2517, 330 U.N.T.S. 38 (the “New York Convention” or “Convention”), as incorporated into the Federal Arbitration Act (“FAA”), 9 U.S.C. §§201-208. Two motions are now before the Court: the petitioner’s motion to remand the action to New York State Supreme Court, ECF No. 18; and the respondent’s motion to dismiss the petition for failure to state a claim, ECF No. 20. For the following reasons, the petitioner’s motion to remand is denied and the respondent’s motion to dismiss is granted. I. A. Petitioner Endurance is an insurance company organized under the laws of Bermuda, with its principal place of business in Bermuda. See Resp.’s Memo. on Dismissal, ECF No. 21, at 2; Pet. 1, Notice of Removal, Ex. A, ECF No. 6-1 (“Ex. A”) at 2.1 Respondent Horseshoe is comprised of collateralized Separate Accounts HS0083 and HS0084, organized under the laws of Bermuda and belonging to a Bermuda limited liability company with its principal place of business in Bermuda. See Resp.’s Memo. on Dismissal at 2; Pet. 2, Ex. A at 2. In 2022, the parties initiated arbitration proceedings in Bermuda regarding a dispute subject to their materially identical reinsurance contracts, which contain identical arbitration provisions. See Resp.’s Memo. on Dismissal at 2-3; Pet.

8-10, Ex. A at 4. The arbitration clauses require disputes to be arbitrated in Hamilton, Bermuda, pursuant to Bermuda procedural law, namely the Bermuda Arbitration Act 1986 (“Bermuda Arbitration Act”), and pursuant to New York substantive law. In particular, the contracts state: The seat of the arbitration shall be in Hamilton, Bermuda and the arbitration tribunal shall apply the laws of the state of New York as the proper law of th[e] Reinsurance Contract. The arbitration shall be conducted under, and the arbitration tribunal shall be governed by, the provisions of the Bermuda Arbitration Act 1986 and/or any statutory modifications or amendments thereto for the time being in force. Contract No. XA200910M at 22, Ex. A at 39; Contract No. XA200911M at 21, Ex. A at 64. The arbitration clauses also call for each party to appoint an arbitrator and for the party-appointed arbitrators to agree upon an Umpire. If the party-appointed arbitrators cannot agree on an Umpire, the parties may ask the Secretary General of the Court of Arbitration of the International Chamber of Commerce (“ICC Court”) to appoint one. The clauses specify that all arbitrators must “be completely impartial and disinterested in their respective appointing parties and in the result of the arbitration.” Contract No. XA200910M at 22, Ex. A at 39; Contract No. XA200911M at 21, Ex. A at 64. After the party-appointed arbitrators failed to agree on an Umpire in the Bermuda arbitration proceeding at issue in this case, Horseshoe applied to the ICC Court for an appointment. Resp.’s Memo. on Dismissal at 3. On October 6, 2022, the ICC Court appointed Sir Bernard Eder as presiding arbitrator. See ICC Appointment Ltr. at 2, Ex. A at 104. Endurance challenged the appointment of Sir Bernard before the ICC Court, alleging that Sir Bernard is biased because the ICC Court provided him with correspondence in which Endurance “aggressively opposed” the appointment of an Umpire with his precise background and because of his treatment of Endurance’s counsel in a recent unrelated arbitration. ICC Decision

 
Reprints & Licensing
Mentioned in a Law.com story?

License our industry-leading legal content to extend your thought leadership and build your brand.

More From ALM

With this subscription you will receive unlimited access to high quality, online, on-demand premium content from well-respected faculty in the legal industry. This is perfect for attorneys licensed in multiple jurisdictions or for attorneys that have fulfilled their CLE requirement but need to access resourceful information for their practice areas.
View Now
Our Team Account subscription service is for legal teams of four or more attorneys. Each attorney is granted unlimited access to high quality, on-demand premium content from well-respected faculty in the legal industry along with administrative access to easily manage CLE for the entire team.
View Now
Gain access to some of the most knowledgeable and experienced attorneys with our 2 bundle options! Our Compliance bundles are curated by CLE Counselors and include current legal topics and challenges within the industry. Our second option allows you to build your bundle and strategically select the content that pertains to your needs. Both options are priced the same.
View Now
September 05, 2024
New York, NY

The New York Law Journal honors attorneys and judges who have made a remarkable difference in the legal profession in New York.


Learn More
May 15, 2024
Philadelphia, PA

The Legal Intelligencer honors lawyers leaving a mark on the legal community in Pennsylvania and Delaware.


Learn More
May 16, 2024
Dallas, TX

Consulting Magazine recognizes leaders in technology across three categories Leadership, Client Service and Innovation.


Learn More

Truly exceptional Bergen County New Jersey Law Firm is growing and seeks strong plaintiff's personal injury Attorney with 5-7 years plaintif...


Apply Now ›

Epstein Becker & Green is seeking an associate to joins its Commercial Litigation practice in our Columbus or Cincinnati offices. Ca...


Apply Now ›

Job Opportunity: Location: Prestigious Florida Law Firm seeks to hire a Business attorney with at least 5 years of experience for their Ft. ...


Apply Now ›
04/29/2024
The National Law Journal

Professional Announcement


View Announcement ›
04/15/2024
Connecticut Law Tribune

MELICK & PORTER, LLP PROMOTES CONNECTICUT PARTNERS HOLLY ROGERS, STEVEN BANKS, and ALEXANDER AHRENS


View Announcement ›
04/11/2024
New Jersey Law Journal

Professional Announcement


View Announcement ›