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incapable of being performed," found that the Liquidator was without
statutory authority to engage in arbitration. Therefore, since the arbitration
clauses in this case were "incapable of being performed" and the claims were
not "capable of settlement by arbitration," the requirements of the
Convention were not in force.
Corcoran v. Ardra Ins. Co. Ltd., N.Y.L.J., Aug. 15, 1988, at 24, col. 3 (N.Y. Sup. Ct.
1988). The court declined to follow a Fourth Circuit decision which held that
the liquidation of an insolvent insurance company does not constitute the
"business of insurance" as that term is used in the McCarran‐Ferguson Act.
Instead, it denied a motion to compel arbitration under the Federal Arbitration
Act.
Corcoran v. Doug Ruedlinger, Inc., Index No. 5349‐87, slip op. (N.Y. Sup. Ct.
Aug. 21, 1987). The court denied defendant's motion to compel arbitration and
found that, pursuant to the McCarran‐Ferguson Act, the Federal Arbitration
Act does not preempt the New York Insurance Law.
Ideal Mut. Ins. Co. v. Phoenix Greek Gen. Ins. Co., No. 83 Civ. 4687 (S.D.N.Y.
Dec. 8, 1987) (LEXIS, Genfed library, Courts file). The court rescinded a
previous order directing arbitration of a reinsurance dispute because the
ceding company subsequently was placed in liquidation. It stated an insurer
placed in liquidation or its liquidator is not compelled to arbitrate claims.
In re Allcity Ins. Co. v. Kondak, 66 A.D.2d 531 (N.Y. App. Div. 1979). The court
followed Knickerbocker, and denied a motion to order an insurance company
that had been placed into rehabilitation to arbitrate uninsured motorists
claims, and instead ordered that all disputes be resolved in the rehabilitation
proceedings.
In re Application for an Order Staying Arbitration by the General Accident Fire
& Life Assurance Corporation, No. 24632, slip op. (N.Y. A.D. Dec. 3, 1985). One
court's order staying any action or proceeding from being brought against an
insolvent insurer undergoing liquidation, prevents another court from properly
adding the insolvent insurer as an additional respondent. The provisions in the
insurance code regarding the liquidation of insurance companies are exclusive
in their operation and furnish a complete procedure for the protection of the
rights of all parties interested.
In re Liquidation of Union Indem. Ins. Co. of N.Y., 137 Misc.2d 575, 521 N.Y.S.2d
617 (N.Y. Sup. Ct. 1987). In denying reinsurers' motion directing the State
Superintendent of Insurance to proceed to arbitration, the court held that a
state statute which sets forth procedures for liquidation and dissolution of
insurance companies and grants the liquidation court exclusive jurisdiction of
all claims concerning the insolvent insurer constitutes "state law regulating the
business of insurance" within the meaning of the McCarran‐Ferguson Act and
therefore was not superseded by the Federal Arbitration Act.
In Re Petitions of Jukka Laitasalo and Ossi Sokka, as Joint Administrators of
Kansa General International Insurance Company Ltd. and Kansa Reinsurance
Company Ltd., 196 B.R. 913 (S.D.N.Y. 1996). In this ancillary proceeding
brought pursuant to 11 U.S.C. § 304 (Bankruptcy Code), Continental Casualty
Company moved to compel an insolvent Finnish insurance company to
participate in the arbitration of a dispute concerning a letter of credit posted
in the arbitration by the insolvent company, Kansa General International
Insurance Company Ltd. The arbitration, to resolve a dispute arising from a