10 Insurance Giants Lose Bid to Arbitrate Charter School’s Hurricane Damage

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U.S. District Judge Wendy B. Vitter said in her order, that the Eastern District of Louisiana has adopted a “streamlined settlement program” for Hurricane Ida cases, which either party can petition to opt out of within 15 days of the defendant’s responsive pleading, but neither side opted out.

The Judge said that these insurance giants, led by Certain Underwriters at Lloyd’s, London, failed to opt-out of the program, according to the order. As a result, by default, they agreed to enter into the program, which in the opinion of Judge Vitter, overrode the insurer’s efforts to compel arbitration.… “Accordingly, the parties are subject to participation in the SSP.”

The program requires the parties to engage in informal settlement negotiations within 30 days of the case’s disclosure deadline, which is then followed by formal mediation if the case has not yet been settled. The lawsuit can proceed if the parties are unable to reach an agreement through mediation.

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In her Order, Judge Vitter wrote “Should this case be unable to be amicably resolved pursuant to the SSP, or returned to this court’s docket for any reason, the parties may re-urge the present motion at an appropriate time.”