This dispute originates from severe Hurricane Ida-related damage sustained by Friends of Young Audiences on Aug. 29, 2021, at two separate properties it owns in Gretna, Louisiana.
When hurricane Ida hit, the two properties were insured against first-party property losses by a policy that was separately underwritten by the insurers, and was effective from Sept. 7, 2020, through Sept. 7, 2021, according to YAC’s complaint.
YAC filed a claim against the policy on Aug. 26 in the 24th Judicial District Court for Jefferson Parish as it wanted coverage for its property damage and “extra-contractual” penalties under the Louisiana insurance statutes related to an insurer’s bad faith actions and conduct in handling claims.
However, on Oct. 10th the insurers removed the action to the Louisiana federal court, and then filed a motion to compel arbitration, claiming, “The market asserts that there is a valid arbitration clause that falls under the Convention on the Recognition and Enforcement of Foreign Arbitral Awards. Therefore, this court has original jurisdiction.”
