German International School of Fort Lauderdale, LLC v. Certain Underwriters at Lloyd’s, London

At a glance

Parties

German International School of Fort Lauderdale, LLC v. Certain Underwriters at Lloyd's, London

Case no.

Civil Action No. 19-60741-Civ-Scola

Court

U.S. District Court for the Southern District of Florida (Judge Robert N. Scola, Jr.)

Treaty

New York Convention (Chapter 2 of the Federal Arbitration Act, 9 U.S.C. §§ 201–208); arbitration clause in an insurance policy

Sector

Property insurance (hurricane damage)

Outcome

Motion to dismiss and compel arbitration granted. The plaintiff was compelled to arbitrate and the case was dismissed with prejudice (13 May 2019).

The dispute

The German International School of Fort Lauderdale held an insurance policy from Certain Underwriters at Lloyd's, London. It sued the underwriters for breach of contract in Florida state court, alleging that they had refused to pay for damage caused by Hurricane Irma. The underwriters removed the case to federal court and moved to dismiss and compel arbitration. They relied on the policy's arbitration clause, which provides for two party-appointed arbitrators and an umpire, and argued that the clause falls under the New York Convention. The school did not respond to the motion.

Key holdings

1. The Court has jurisdiction under 9 U.S.C. §§ 203 and 205, because an action falling under the Convention is deemed to arise under the laws and treaties of the United States, and § 205 permits removal of such disputes. p. 2
2. All four Bautista requirements are met. First, the policy contains a written agreement to arbitrate, and the coverage dispute is "an aspect of the Policy". Second, the clause names no place of arbitration, but read with the provision requiring suits to be brought in the United States it provides for arbitration in a Convention State. Third, the insurance relationship is commercial. pp. 3–4
3. The fourth requirement (a non-American party) is met because part of the policy is subscribed by Syndicate 2001. That syndicate is wholly owned by Amlin Underwriting Ltd., which is organised and has its principal place of business in the United Kingdom. p. 4
4. The plaintiff raised no affirmative defences and did not claim that the agreement was null and void, inoperative or incapable of being performed. The Court therefore had to compel arbitration. p. 4
5. Dismissal, rather than a stay, is the proper remedy. All of the claims are arbitrable and the plaintiff did not ask for a stay. The case was dismissed with prejudice. pp. 4–5

Procedural history

1. 2 February 2019Complaint for breach of contract filed in the Circuit Court of the Seventeenth Judicial Circuit, Broward County, Florida.
2. 21 March 2019The defendant removed the case to federal court and filed its motion to dismiss and compel arbitration.
3. 13 May 2019Order granting the motion. Arbitration compelled and the case dismissed with prejudice.

Tribunal, counsel and experts

Decided by

• Jr. Robert N. Scola Judge, U.S. District Court for the Southern District of Florida

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Keywords

• New York Convention
• motion to compel arbitration
• Federal Arbitration Act
• 9 U.S.C. § 205 removal
• Lloyd's
• Hurricane Irma
• insurance policy arbitration clause
• Bautista v. Star Cruises
• VVG Real Estate
• Syndicate 2001
• Amlin Underwriting
• dismissal versus stay
• commercial relationship
• agreement in writing
• seat of arbitration

Summary generated with AI from the published documents — refer to the award for the authoritative text.