7th Cir. Says Arbitrators Have Broad Remedial Powers Under ‘Honorable Engagement’ Clause
August 24, 2021
CHICAGO — A federal appellate court has refused to vacate two post-award orders issued by an arbitration panel in a dispute over Resolute Management Inc.’s methodology for calculating reinsurance obligations for underlying asbestos losses, ruling that the arbitrators acted within the scope of their authority.
In an Aug. 23 opinion, the 7th Circuit U.S. Court of Appeals said the arbitration agreement’s “honorable engagement” provision gave the arbitrators the authority to fashion an appropriate remedy that should not be second-guessed by the court.
Between 1966 and 1976, Continental Casualty entered eight reinsurance treaties with Underwriters, while from 1967 to 1978, Continental …