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ARTICLE · 25 OCTOBER 2011

Law Firm Disqualified After Its Client’s Party-Appointed Arbitrator Provided It With Panel Deliberations

Cozen O'Connor
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On October 3, 2011, the U.S. District Court for Southern District of New York disqualified a law firm from acting as counsel in a reinsurance arbitration.

United StatesLitigation, Mediation & Arbitration
Richard Mason
Richard Mason
Robert Tomilson
Robert Tomilson

On October 3, 2011, the U.S. District Court for Southern District of New York disqualified a law firm from acting as counsel in a reinsurance arbitration. Northwestern National Ins. Co. v. Insco, Ltd., No. 11 Civ. 1124 (S.D.N.Y. Oct. 3, 2011).

Case Synopsis

As a preliminary matter, the court first observed that it, rather than the arbitration panel, had jurisdiction to determine whether counsel should be disqualified because (1) disqualification "requires an application of substantive state law regarding the legal profession," and (2) the panel had declined to decide the issue.

On the substance, the court found that defendant Insco's party-appointed arbitrator disclosed to Insco's counsel numerous emails reflecting panel deliberations, and communicated with it while motions were pending (during which time ex parte communication was barred). In deciding to disqualify Insco's counsel, Freeborn & Peters, LLP, the court held: "Freeborn's actions in obtaining and

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