N.Y. Federal Judge Confirms $8.7 Million Award, Orders Allied Provident to Appoint New Arbitrator

NEW YORK — A New York federal judge has confirmed an interim arbitration award, finding that the arbitration proceedings were not “fundamentally unfair” and requiring Allied Provident Insurance Inc. to post more than $8.7 million to secure its obligations under a reinsurance agreement.

On Sept. 26, Judge Alison J. Nathan of the U.S. District Court for the Southern District of New York determined that the adverse party’s arbitrator did not act with evident partiality. The judge also ordered Allied Provident to appoint a new party arbitrator to fill the vacancy left by its previous arbitrator, who resigned.

In April 2011, …