In reinsurance arbitrations, once the arbitration panel issues
its final award its job is over. That's what the doctrine
of functus officio means. But there are exceptions to the
functus officio rule (see our
Blog from November 2018). Additionally, what happens when
a panel retains jurisdiction after issuing the final award?
In a recent case, the issue of retention of jurisdiction after the
final award was issued clashed with a new dispute between the
parties.
In Chicago Insurance Co. v. General Reinsurance Corp.,
18-CV-10450 (JPO), 2019 U.S. Dist. LEXIS 182764 (S.D.N.Y. Oct. 22,
2019), the parties arbitrated over a billing on a settlement of
asbestos-related losses submitted by the cedent and disputed by the
reinsurers. The arbitration panel issued a final award on the
billing, but specifically retained jurisdiction to resolve any
dispute arising out of the final award.
