Cedents Challenge Reinsurance Arbitration Awards, Alleging Improper Ex Parte Communications, Disenfranchisement

DETROIT — Cedents are urging a Michigan federal judge to vacate or modify reinsurance arbitration awards issued in their dispute with National Union Fire Insurance Co., asserting that National Union’s arbitrator had improper ex parte communications with counsel and that the cedents’ party arbitrator was left out of crucial panel decisions.

The cedents have also asked the U.S. District Court for the Eastern District of Michigan to allow them to depose panel members and National Union’s counsel regarding the alleged communications and arbitrator disenfranchisement.

National Union Fire Insurance Company of Pittsburgh issued a three-year Underlying Per Occurrence Excess of …