A federal appeals court on Wednesday upheld a lower court’s ruling in favor of Lloyd’s of London’s insurer, saying it had no authority to vacate an arbitration award even when it is based on factual error.
Omaha, Nebraska-based Martinique Properties LLC owned apartments in the city for which it had property coverage through certain underwriters at Lloyd’s, according to the ruling by the 8th US Circuit Court of Appeals in St. Louis i Martinique Properties LLC v. Certain Underwriters at Lloyd’s of London et al.
In May 2016, the apartments suffered hail and wind damage and Martinique filed an insurance claim for reimbursement of its repair costs, but there was a dispute between Martinique and the insurer over the amount.
Under a policy provision, a panel of appraisers would determine the amount of loss, which would be binding. Martinique invoked the provision and an assessment panel agreed on a binding assessment in June 2020.
Martinique sued, stating that the price had included incorrect figures and measurements.
The U.S. District Court in Omaha granted Lloyd̵
7;s motion to dismiss and was upheld by a three-judge panel.“Martinique Properties has alleged only factual errors that call into question the merits of the award” and the court has no authority to review the merits of an arbitration award under the Federal Arbitration Act even when that is the case, the ruling said.
Lawyers in the case could not be reached for comment.
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