Monarch Consulting, Inc. v. Nat’l Union Fire Ins. Co. of Pittsburgh, Penn.

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At issue in this appeal was whether the parties’ disputes pertaining to certain workers’ compensation insurance payment agreements should be submitted to arbitration. To resolve this issue, the Court of Appeals was required to make a threshold determination of the whether the McCarran-Ferguson Act precludes application of the Federal Arbitration Act (FAA) in relation to Cal. Ins. Code 11658. The Court of Appeals reversed the order of the Appellate Division, holding (1) because application of the FAA does not invalidate, impair, or supersede section 11658, the McCarran-Ferguson Act is not implicated, and the FAA applies to the parties’ payment agreements in this case; and (2) because the parties clearly and unmistakably delegated the question of arbitrability and enforceability of the arbitration clauses to the arbitrators, the FAA mandates that the arbitration provisions be enforced as written. View "Monarch Consulting, Inc. v. Nat’l Union Fire Ins. Co. of Pittsburgh, Penn." on Justia Law