Police Jury v. Indian Harbor

At a glance

Parties

Police Jury of Calcasieu Parish (plaintiff–appellee) v. Indian Harbor Insurance Company, Lexington Insurance Company, QBE Specialty Insurance Company, Steadfast Insurance Company, United Specialty Insurance Company, General Security Indemnity Company of Arizona, Old Republic Union Insurance Company and Safety Specialty Insurance Company (defendants–appellants)

Case no.

United States Court of Appeals for the Fifth Circuit, No. 24-30696 (appeal from USDC No. 2:24-CV-342)

Forum and rules

US federal court; Convention on the Recognition and Enforcement of Foreign Arbitral Awards

Court

United States Court of Appeals for the Fifth Circuit, on appeal from the United States District Court for the Western District of Louisiana

Treaty

Convention on the Recognition and Enforcement of Foreign Arbitral Awards (New York Convention)

Tribunal

Circuit Judges Southwick, Higginson (author) and Wilson

Sector

Property insurance; hurricane damage

Outcome

The Court held that federal subject-matter jurisdiction under the Convention was lacking and remanded the case to the district court (27 January 2026).

The dispute

The Police Jury of Calcasieu Parish bought surplus line insurance from foreign and domestic insurers under a single policy. The policy's Contract Allocation Endorsement provided that it "shall be construed as a separate contract between the Insured and each of the Underwriters." After Hurricanes Laura and Delta in 2020, the Parish claimed under the policy and then sued in state court. It soon dismissed the foreign insurers with prejudice. The domestic insurers removed the case to federal court, relied on the Convention as the basis for subject-matter jurisdiction, and sought to compel arbitration. They argued that the foreign insurers remained parties to the agreement, or that equitable estoppel required arbitration. The Parish contested subject-matter and appellate jurisdiction and denied that the Convention applied.

Key holdings

1. Town of Vinton v. Indian Harbor Insurance Co., 161 F.4th 282 (5th Cir. 2025), decides this case. There the Court construed an identical Contract Allocation Endorsement as creating separate contracts between the insured and each insurer. p. 3
2. Following the Louisiana Supreme Court's certified answers in this case, Louisiana law does not allow estoppel to be used to compel arbitration. This displaces the Court's earlier equitable estoppel decision in Bufkin Enter. v. Indian Harbor Ins. Co. p. 3
3. No foreign party is a party to any arbitration agreement at issue, and no agreement falls within the Convention's scope. The Convention was the only basis for subject-matter jurisdiction, so the Court lacks it. p. 3
4. The domestic insurers had first also claimed diversity jurisdiction, but they conceded that the timing of removal barred it. p. 2, n. 1
5. The case is remanded to the district court to decide the pending motions consistently with Vinton. The Parish's motion for summary reversal and remand and the insurers' motion to stay are both denied as moot. p. 4

Procedural history

1. 2020Hurricanes Laura and Delta. The Parish files claims under the policy, then sues in state court and dismisses the foreign insurers with prejudice. The domestic insurers remove the case to federal court.
2. 15 March 2024Earlier Fifth Circuit appeal in this dispute, No. 24-30075.
3. 25 June 2024Earlier Fifth Circuit appeal in this dispute, No. 24-30261.
4. 25 October 2024The Louisiana Supreme Court answers the questions certified in this case (2024-00449, 395 So. 3d 717).
5. 27 January 2026Fifth Circuit judgment: no subject-matter jurisdiction under the Convention; case remanded to the district court.

Tribunal, counsel and experts

Decided by

• Stephen A. Higginson Judge, United States Court of Appeals for the Fifth Circuit (authored the opinion)

Run a conflict check on these names →

Keywords

• New York Convention
• subject-matter jurisdiction
• removal
• motion to compel arbitration
• equitable estoppel
• surplus line insurance
• Contract Allocation Endorsement
• separate contracts
• Hurricane Laura
• Hurricane Delta
• Calcasieu Parish
• Louisiana law
• certified questions
• Town of Vinton
• Bufkin
• non-signatory

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