10/17/2007
START DATE
END DATE
4/24/2008
Montpelier Reinsurance Ltd. v Manufacturers Property & Casualty Limited
COURT:
LAW:
JUDGE(S):
CLAIMANT'S LAWYER:
DEFENDANT'S LAWYER:
The Supreme Court of Bermuda
Commercial Law
Hon. Chief Justice Ian Kawaley
Mr. Jan Woloniecki (Attride-Stirling & Woloniecki)
Mr. John Riihiluoma (Appleby)
FACTS OF THE CASE:
Montpelier Reinsurance Ltd. sought a court-appointed arbitrator after the contractual process for selecting a third arbitrator in a reinsurance dispute broke down. The arbitration agreement contained a clause requiring the third arbitrator to be selected either by mutual agreement or through a lot-drawing mechanism. Montpelier argued that the lot-drawing mechanism had failed, while MPCL insisted that it should have been enforced. The Court had to determine whether it had jurisdiction to directly appoint an arbitrator.
SUMMARY:
(1) Could the Court intervene in an arbitration panel selection? (2) Was the lot-drawing process mandatory or could it be overridden? (3) What was the role of party-appointed arbitrators in arbitration selection?
OUTCOMES:
Third arbitrator appointed by the Court; contractually agreed appointment mechanism overridden.
RULED IN FAVOUR OF:
Montpelier Reinsurance Ltd.
PLAINTIFF/CLAIMANT
DEFENDANT:
DURATION (DAYS):
ISSUES:
RELEVANCE:
RULING:
RULING TYPE:
CASES CITED:
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Montpelier Reinsurance Ltd. v Manufacturers Property & Casualty Limited
Montpelier Reinsurance Ltd. sought a court-appointed arbitrator after the contractual process for selecting a third arbitrator in a reinsurance dispute broke down. The arbitration agreement contained a clause requiring the third arbitrator to be selected either by mutual agreement or through a lot-drawing mechanism. Montpelier argued that the lot-drawing mechanism had failed, while MPCL insisted that it should have been enforced. The Court had to determine whether it had jurisdiction to directly appoint an arbitrator.