Arbitration Clause Enforcement Upheld
April 01, 2013
In a case of first impression, GTTC client Meracord LLC obtained a ruling enforcing an arbitration clause in a D&O policy issued by Philadelphia Indemnity Insurance Company (PIIC). PIIC sought to avoid arbitration, and argued that the Washington Supreme Court’s recent decision in Washington DOT v. James River Ins. Co., 176 Wn.2d 390 (2012), rendered the policy’s arbitration clause unenforceable. On April 23, 2013, Judge Leighton, in federal court in Tacoma, agreed with Meracord and held that the DOT decision prevents insurers from imposing arbitration over the insured’s objection, but does not apply where it is the insured that is enforcing the arbitration term. Meracord is represented by GTTC partner Frank Cordell.