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Court Of Chancery Vacated Arbitration Award That Violates Law

Posted In Arbitration

Donegal Mutual Ins. Co. v. Progressive Northern Ins. Co., C.A. 5049-CC (January 11, 2011)

Arbitration between insurance companies is different.  To begin with, the arbitrators are expected more than most to follow the statutory scheme they are supposed to enforce.  Here, when the arbitrator made a clear mistake of law, the Court vacated the award.  Whether it would do so in a less clear cut case involving other sorts of arbitration claims remains to be seen.