Panel Erred In Refusing to Disband After Issuing Final Award

NEW YORK - An arbitration panel exceeded its power in refusing to disband after issuing a final arbitration award that required a reinsurer to pay outstanding claims, a New York federal judge ruled Nov. 14. KX Reinsurance Co. v. General Reinsurance Corp., No. 08-7807 (S.D. N.Y.).

U.S. District Judge Shira A. Scheindlin of the U.S. District Court for the Southern District of New York affirmed the award in part, but ruled that the panel was not authorized to consider additional claims not presented by the parties.

Between 1975 and 1979, KX Reinsurance Co., an English company, reinsured North Star Reinsurance …