David Yoshimura Comments on Recent Second Circuit Arbitration Treaty Ruling in Law360

In an article for Law360, business litigation partner David Yoshimura commented on the United States Court of Appeals for the Second Circuit ruling in favor of international insurers seeking to arbitrate hurricane damage claims, which help narrow a circuit court split on the interpretation of the McCarran Ferguson Act.

In a ruling addressing two cases — Certain Underwriters at Lloyds et al. v. 3131 Veterans Blvd. LLC and Certain Underwriters at Lloyds, London et al. v. Mpire Properties LLC, the Second Circuit sided with insurance companies that seek to arbitrate disputes rather than litigate them, particularly in states with anti-arbitration laws. Yoshimura noted that these cases, and others like it through different appellate courts, mean the Supreme Court is less likely to take up questions concerning international trade and arbitration treaties. In questions of whether treaties like the McCarran Ferguson Act are “self-executing,” meaning no further action from Congress would be required for them to take effect. He noted that the Second Circuit had to wrestle with if the treaty was self-executing in its entirety or only in certain provisions.

The full article is available to Law360 subscribers.