A London judge ruled that Caesars Entertainment Inc. must halt Nevada litigation against Markel Bermuda Ltd. for more than $2 billion in pandemic-related losses, citing a Bermuda Form arbitration clause, a move that many believe will send the dispute to an insurer-friendly venue.
“Insurers see a distinct advantage over policyholders in Bermuda Form arbitration as they are repeat players under clauses that they have drafted and refined over many years,” Partner Peter A. Halprin said in an interview with Law360. “This is essentially home court advantage, with Bermudian and English insurers saying I’d rather have this dispute decided by former English justices and barristers.” He explained that Bermuda Form arbitrations generally follow the English system, which, unlike the U.S. system, forces the losing side to pay for the other side’s costs.
Halprin, who acts as both arbitrator and counsel for U.S. and foreign companies in domestic and international arbitrations, expects a further increase in pandemic insurance arbitrations with reinsurance arbitrations to follow, as policyholders with large towers of insurance will likely encounter participating foreign insurers with arbitration provisions.
Read the full Law360 article here.