January 9, 2019
FedArb, a leading Alternative Dispute Resolution firm based in Palo Alto, announces that Lloyd’s has released a Model Arbitration Clause that Provides for Chairperson to be a Retired Federal Court Judge.
On December 20th, Lloyd’s Market Association (LMA) published its model arbitration clause (LMA 5344) to its North America Casualty Reinsurance Business panel. FedArb worked with the LMA committee and with numerous brokers and insurers in drafting this model clause. As set forth in the LMA’s press release:
The clause outlines the process and timescales for the administration of alternative dispute resolution including arbitration. Included in the provisions is the requirement that, where an arbitration panel is required, it includes one arbitrator appointed by the reinsured and one arbitrator appointed by the reinsurer(s) (both of whom shall be active or retired officers of insurance or reinsurance companies or Lloyd’s syndicates with no less than ten years experience in the casualty insurance or reinsurance industry). The clause also provides that the third, independent, arbitrator shall be a retired federal court judge.
“Federal court judges are uniquely qualified to Chair arbitrations of complicated international reinsurance disputes,” said FedArb‘s CEO, Kennen D. Hagen. “We started FedArb ten years ago and have assembled a bench of over fifty former federal court judges nationwide–the largest such bench of any ADR provider.”
A copy of the model clause can be found on the NACRBP section of the LMA website as well as the Lloyd’s Wordings Repository.