Court Rules Texas County Must Arbitrate Harvey Claims

Law360 (September 1, 2020, 10:59 PM EDT) -- A Southeast Texas county must arbitrate its claims against Lloyd's of London underwriters and a slew of insurers over property damage caused by Hurricane Harvey, a federal judge has ruled, rejecting arguments that state law prevented the dispute from going to arbitration.

In a decision Monday, U.S. District Judge Nelva Gonzales Ramos disagreed with the arguments put forward by Nueces County that the court lacked jurisdiction under a federal statute, the McCarran-Ferguson Act, which says Congress cannot pass laws that would interfere with a state's right to regulate the business of insurance.

The county argued that Texas law bars the enforcement...

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