Court, Rather than Arbitrators, Should Decide Collateral Estoppel Issue, Wausau Argues to 1st Cir.

BOSTON — The court, rather than an arbitration panel, should decide whether OneBeacon American Insurance Co. is collaterally estopped from arbitrating a reinsurance dispute with Employers Insurance Company of Wausau, Wausau argues in its appeal to the 1st Circuit U.S. Court of Appeals.

In its Oct. 12 appellate brief, Wausau asserts that under the Federal Arbitration Act, federal rulings entered upon confirmed arbitration awards are coequal with federal rulings entered in an action, therefore federal courts, not arbitrators, determine the preclusive effect of such rulings.

Between 1966 and 1986, certain insurers within the OneBeacon Insurance Group had a treaty …