United States District Court, D. Massachusetts
NATIONWIDE MUTUAL INS. CO., Plaintiffs,
LIBERTY MUTUAL INS. CO., Defendants
For Nationwide Mutual Insurance Company, Petitioner (1:13-cv-12910-PBS): Hilary J. Loynes, LEAD ATTORNEY, PRO HAC VICE, Larson King, LLP, Saint Paul, MN; Keith A. Dotseth, LEAD ATTORNEY, Larson & King, LLP, St. Paul, MN; Susan A. Hartnett, Sugarman, Rogers, Barshak & Cohen, P.C., Boston, MA.
For Liberty Mutual Insurance Company, Respondent (1:13-cv-12910-PBS): David A. Attisani, LEAD ATTORNEY, Jean-Paul Jaillet, Choate, Hall & Stewart, Boston, MA.
For Nationwide Mutual Insurance Company, National Casualty Company, Plaintiffs (1:14-cv-12046-PBS): Susan A. Hartnett, LEAD ATTORNEY, Sugarman, Rogers, Barshak & Cohen, P.C., Boston, MA.
For Liberty Mutual Insurance Company, Liberty Mutual Fire Insurance Company, Defendants (1:14-cv-12046-PBS): David A. Attisani, LEAD ATTORNEY, Choate, Hall & Stewart, Boston, MA.
MEMORANDUM AND ORDER
Patti B. Saris, Chief United States District Judge.
This action arises out of a never-ending reinsurance dispute over the meaning of contract terms as they relate to billing claims between Nationwide Mutual Insurance Company and National Casualty Company (collectively, " Nationwide" ) and Liberty Mutual Insurance Company (" Liberty" ). An Arbitration Panel handed down its decision on June 26, 2013, and the Massachusetts Superior Court confirmed the Award. Leapfrogging between state
and federal court, the parties now continue to dispute the same contract provisions in the context of " new" reinsurance claims.
Two motions are before this Court: first, Nationwide's motion to compel arbitration of the dispute arising out of the " new" claims, and second, Nationwide's motion to vacate the Arbitration Panel's Clarification of its initial Award. After hearing, the motion to compel is ALLOWED in part and DENIED in part. The motion to vacate is ALLOWED.
A. The Arbitration Dispute
Between 1972 and 1983, Nationwide and Liberty entered into a series of Excess of Loss Reinsurance Contracts (" Treaties" ), which provided that Nationwide, the reinsurer, would indemnify Liberty against certain covered losses. The Treaties contain arbitration clauses, which provide,
" As a condition precedent to any right of action hereunder, any dispute arising out of this Agreement shall be submitted to a decision of a board of arbitration composed of ...