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International Arbitration and State Regulation: The Interaction Between the McCarran-Ferguson Act and the New York Convention
Direct insurance contracts, like other commercial agreements, can be structured to provide for arbitration as the chosen means of dispute resolution. See, e.g., Michael Ha, Arbitration Boosts Efficiency: Alliance, National Underwriter, March 17, 2003. Despite the perceived efficiencies of arbitration, some groups have pushed for widespread regulation of the use of arbitration clauses in commercial insurance contracts. See Mandatory Arbitration on NAIC Agenda, Insurance Chronicle, Feb. 3, 2003. Thus far, those opposed to arbitration clauses in insurance contracts have focused their efforts on persuading individual state regulators to restrict or ban the inclusion of mandatory arbitration clauses. See id.
The presumed primacy of state authorities in insurance regulation is grounded in the McCarran-Ferguson Act, 15 U.S.C. ”1011-1015. Consequently, there may be situations where a federal policy in favor of arbitration yields to state regulations that forbid the practice in the specific context of insurance contracts. See, e.g., National Home Ins. Co. v. King, 291 F. Supp. 2d 518, 529-30 (E.D. Ky. 2003) (gathering leading cases). That view often relies on the McCarran-Ferguson Act statement that “[n]o Act of Congress shall be construed to invalidated, impair, or supersede any law enacted by any State for the purpose of regulating the business of insurance … unless such Act specifically relates to the business of insurance.” 15 U.S.C. '1012(b). Because the Federal Arbitration Act (“FAA”) ' which contains the federal government's most-cited expression of support for arbitration clauses ' does not relate specifically to insurance, see National Home Ins., 291 F. Supp. 2d at 528, some courts have concluded that its general support for the enforcement of arbitration clauses is “reverse pre-empted” by the McCarran-Ferguson Act.
Bankruptcy Sales: Finding a Diamond In the Rough
There is no efficient market for the sale of bankruptcy assets. Inefficient markets yield a transactional drag, potentially dampening the ability of debtors and trustees to maximize value for creditors. This article identifies ways in which investors may more easily discover bankruptcy asset sales.
Judge Rules Shaquille O'Neal Will Face Securities Lawsuit for Promotion, Sale of NFTs
A federal district court in Miami, FL, has ruled that former National Basketball Association star Shaquille O'Neal will have to face a lawsuit over his promotion of unregistered securities in the form of cryptocurrency tokens and that he was a "seller" of these unregistered securities.
Why So Many Great Lawyers Stink at Business Development and What Law Firms Are Doing About It
Why is it that those who are best skilled at advocating for others are ill-equipped at advocating for their own skills and what to do about it?
A Lawyer's System for Active Reading
Active reading comprises many daily tasks lawyers engage in, including highlighting, annotating, note taking, comparing and searching texts. It demands more than flipping or turning pages.
Blockchain Domains: New Developments for Brand Owners
Blockchain domain names offer decentralized alternatives to traditional DNS-based domain names, promising enhanced security, privacy and censorship resistance. However, these benefits come with significant challenges, particularly for brand owners seeking to protect their trademarks in these new digital spaces.