JOURNAL ARTICLE

5th Circuit: Louisiana Law Voids Arbitration Clause in Surplus Lines Policies.

  • Published In: Claims Journal, 2024. P. N.PAG 1 of 3

  • Database: Business Source Ultimate 2 of 3

  • Authored By: Amacher, Ezra 3 of 3

Abstract

The 5th Circuit Court of Appeals has ruled that a Louisiana law voids the formation of an arbitration clause in a surplus lines insurance contract. The court reasoned that the principles of contractual freedom in the surplus lines business cannot override specific statutory commands, such as Louisiana's anti-arbitration policy for most insurance contracts. The case involved a hotel owner and their surplus lines insurer, with the owner suing the insurer for not adequately covering hurricane damage. The court noted that there is disagreement among district courts in Louisiana regarding the effect of the statute on arbitration clauses in surplus lines insurance policies. [Extracted from the article]

Additional Information

  • Source:Claims Journal. 2024/06, pN.PAG
  • Document Type:Article
  • Subject Area:Law
  • Publication Date:2024
  • Accession Number:177753452
  • Copyright Statement:Copyright of Claims Journal is the property of Wells Media Group and its content may not be copied or emailed to multiple sites without the copyright holder's express written permission. Additionally, content may not be used with any artificial intelligence tools or machine learning technologies. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Looking to go deeper into this topic? Look for more articles on EBSCOhost.