Charles House Condominium Association, Inc. v. Old Republic Union Insurance Company
2:22-cv-02513
E.D. La.Apr 9, 2025Background
- Charles House Condominium Association sued Old Republic Union Insurance Company over insurance claims for Hurricane Ida damage to its property in New Orleans.
- The insurance policy at issue contains an arbitration clause and included both Old Republic (a domestic insurer) and Syndicate 1458 (a UK-based foreign insurer).
- Initially, Charles House conceded that the Convention on the Recognition and Enforcement of Foreign Arbitral Awards (the Convention) applied, despite Louisiana law typically prohibiting arbitration clauses in surplus lines policies.
- Defendant successfully moved to compel arbitration and stay the federal proceedings, a ruling that Charles House later sought to reconsider after a new Louisiana Supreme Court case.
- Charles House argued that the new state supreme court precedent voids arbitration clauses in surplus lines policies.
- The Court denied reconsideration, holding that the Convention still governs when a foreign insurer is a party to the policy.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Effect of the Convention on arbitration clause | Convention no longer compels arbitration after state ruling | Convention preempts state law, arbitration clause still enforceable | Convention governs, arbitration clause enforceable |
| Whether policy constituted separate contracts | Insurers' obligations are several; separate contracts exist | Single contract governs both insurers, Convention applies | Single contract, Convention applies |
| Impact of Police Jury decision | Police Jury voids arbitration clause even if Convention applies | Distinction: Police Jury applies to domestic contracts only | Police Jury inapplicable to contracts governed by Convention |
| Raising new arguments in reply brief | New arguments about contract structure in reply | Arguments waived if raised for first time in reply | New arguments in reply brief are waived |
Key Cases Cited
- Austin v. Kroger Texas, L.P., 864 F.3d 326 (5th Cir. 2017) (outlines standard for Rule 54(b) reconsideration)
- Lavespere v. Niagara Mach. & Tool Works, Inc., 910 F.2d 167 (5th Cir. 1990) (courts may revise interlocutory orders for sufficient reason)
- Jones v. Cain, 600 F.3d 527 (5th Cir. 2010) (arguments raised for first time in reply brief generally waived)
- Safety Nat’l Cas. Corp. v. Certain Underwriters at Lloyd’s, London, 587 F.3d 714 (5th Cir. 2009) (the Convention supersedes conflicting state law on arbitration)