State Law Doesn't Trump Int'l Arbitration Policy: 5th Circ.

Law360 (May 14, 2019, 4:36 PM EDT) -- The Fifth Circuit affirmed on Monday that federal policy relating to international arbitration trumps a Louisiana statute barring arbitration agreements in certain insurance contracts in the state, even when a contract stipulates that it will conform with local state law.

The judges rejected arguments mounted by Louisiana contractor McDonnel Group LLC that a dispute with several of its insurers over coverage for its water-damaged property had to be litigated, concluding that a "conformity to statute" provision in their contract did not mean the pact’s arbitration clause couldn't be enforced.

The contract with the insurers — Great Lakes Insurance SE, International Insurance...

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