Insurer Can’t Compel Arbitration in Louisiana Hotel’s Lawsuit

Louisiana law still doesn’t allow compelled arbitration, a federal appeals panel said Wednesday, upholding a lower court ruling that found the owner of a Best Western Hotel can continue its litigation over its disputed surplus insurance policy.

Independent Specialty Insurance Co. can’t compel arbitration with plaintiff S. K. A. V. LLC, despite having an arbitration provision in its surplus insurance policy, the US Court of Appeals for the Fifth Circuit said in a published opinion. The three-judge panel rejected the insurer’s argument that language added to a state statute by the Louisiana legislature in 2020 opened the door to allow ...