St. Theresa Specialty Hospital, LLC v. Indian Harbor Insurance, et al.

At a glance

Parties

St. Theresa Specialty Hospital, LLC v. Indian Harbor Insurance, et al.

Case no.

Civil Action No. 19-12126, Section "F"

Court

U.S. District Court, Eastern District of Louisiana

Treaty

New York Convention (9 U.S.C. § 206); arbitration clause in § VII(C) of the insurance contract

Court

Judge Martin L. C. Feldman

Sector

Commercial property insurance

Outcome

The insurers' unopposed motion was granted: arbitration compelled, a sole arbitrator appointed, documents ordered produced, and the action stayed (22 October 2019).

The dispute

St. Theresa Specialty Hospital made property damage claims under a commercial property insurance policy. Its insurers, Indian Harbor Insurance and others, refused to pay the full amount claimed. The hospital sued them for breach of contract and statutory penalties. Relying on the arbitration clause in the policy, the insurers moved to compel arbitration, appoint an arbitrator, stay the proceedings and order the hospital to produce documents in aid of arbitration. The hospital filed no opposition.

Key holdings

1. The motion was granted as unopposed under Local Civil Rule 7.5, because no opposition memorandum was filed. The Court also found that the motion had merit. p. 1
2. The action "falls under" the New York Convention. It is a claim for property damage under an insurance policy whose arbitration agreement is covered by the Convention, so it has "some connection, relation, or reference to" that agreement (Acosta v. Master Maint. and Constr., Inc., 5th Cir. 2006). p. 2, n. 1
3. The claims fall within the arbitration clause, which covers "[a]ll matters in difference between the Insured and the Companies in relation to this insurance". The Court therefore directed arbitration under 9 U.S.C. § 206 and § VII(C) of the insurance contract. p. 2, n. 1
4. Under the clause, the party requesting arbitration may choose an arbitrator for the other side if that side does not appoint one within thirty days of notice. The hospital did not appoint one in time, so the Court appointed the insurers' choice, Stephen M. Rogers of Bloomfield, Connecticut, as sole arbitrator. p. 2, n. 1; p. 3
5. The hospital must produce, within 30 days, all documents on the facts of the alleged loss and the scope of the property damage. The action is stayed under 9 U.S.C. § 3. p. 3

Procedural history

1. The hospital sued its insurers for breach of contract and statutory penalties. The insurers moved to compel arbitration, appoint an arbitrator, stay proceedings and require production of documents; the motion was noticed for submission on 23 October 2019.
2. 22 October 2019Order and Reasons: the unopposed motion is granted. Arbitration is compelled, Stephen M. Rogers is appointed sole arbitrator, production of documents is ordered and the action is stayed.

Tribunal, counsel and experts

Decided by

• Martin L. C. Feldman Judge, U.S. District Court, Eastern District of Louisiana

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Keywords

• New York Convention
• motion to compel arbitration
• 9 U.S.C. § 206
• 9 U.S.C. § 3
• stay of proceedings
• appointment of arbitrator
• sole arbitrator
• property insurance
• insurance arbitration clause
• falls under the Convention
• Acosta v. Master Maintenance
• unopposed motion
• document production in aid of arbitration
• Indian Harbor
• Louisiana

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