Reference Guide Update: Concurrent Coverage Disputes in Special Arbitration

New UpdateThe Reference Guide to AF’s Agreements and Rules has been updated regarding Rule 2-4 and its applicability to Special Arbitration filings involving concurrent coverage disputes [Article First (b)].

Simply, Special Arbitration’s jurisdiction is limited to disputes involving concurrent coverage/primacy of policies disputes. It was never intended for Special Arbitration to retain jurisdiction over other coverage defenses. For this reason, the last paragraph on page 35 now reads: 

“The last part of Rule 2-4 clarifies the effect of a coverage denial in Special Arbitration. Simply, a coverage denial based on concurrent coverage/primacy of policies (i.e., primary/excess application of the disputed coverage) does not remove the party/case from jurisdiction in Special Arbitration [Article First (b)]. If, however, a responding party pleads no liability policy was in effect, or, denial of coverage for any other reason, Special Arbitration will lack jurisdiction over the party/case.”
 


Article published in: April 2021 E-Bulletin