Federal Court Upholds P&I Club's Coverage Determination As Valid, Binding ADR Decision

The U.S. District Court for the Southern District of New York has enforced a P&I Club's internal claims appeal process as a legally binding alternative dispute resolution ("ADR") method, rejecting allegations brought by one the Club's Members that the procedure was "fundamentally unfair." TransAtlantic Lines LLC v. Am. Steamship Owners Mut. Prot. & Indemn. Ass'n, Inc., 2017 WL 2334995 (S.D.N.Y. May 30, 2017). The court's holding is a reminder that a coverage decision, rendered in connection with an ADR procedure voluntarily entered into by the parties, is not lightly set aside.

American Steamship Owners Mutual Protection and Indemnity Association ("American Steamship") is a non-profit, mutual protection and indemnity insurance association that provides marine insurance to its Members. American Steamship's claims handling and coverage determinations are carried out by its manager, Shipowners Claims Bureau, Inc. ("SCB"). Members can appeal a denial of coverage to