Citizens of Humani, LLC v. Applied Underwriters Captive Risk Assurance

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Citizens of Humani, LLC v. Applied Underwriters Captive Risk Assurance

Case Number
S-17-0178
Call Date
December 5, 2017
Case Time
9:00 AM
Court Number
Douglas
Case Location
Lincoln
Case Summary

S-17-0178 Citizens of humanity, LLC, a Delaware limited liability company, and CM Laundrey, LLC, a California limited liability company (Appellants) v. Applied Underwriters Captive Risk Assurance Company, Inc., a British Virin Islands company

Douglas County District Court, Judge Shelly R. Stratman

Attorneys: Jonathan J. Papik and Andre R. Barry (Cline Williams Wright Johnson & Oldfather, LLP)(Appellants) --- David A. Blagg and Michael K. Huffer (Cassem, Tierney, Adams, Gotch & Douglas)

Civil: Arbitration clause

Proceedings below: The district court concluded the arbitration agreement contained an enforceable delegation clause and stayed Appellants’ action pending arbitration.  Appellants filed a motion to bypass, which was granted by the Nebraska Supreme Court.

Issues: The district court erred 1) by not addressing or properly applying controlling

Nebraska Supreme Court precedent, specifically Speece v. Allied

Professionals Ins. Co., 289 Neb. 75, 853 N.W.2d 169 (2014) and Kremer v.

Rural Comm. Ins. Co., 280 Neb. 591, 788 N.W.2d 538 (2010), 2) by concluding, without analysis, that the enforceability of arbitration agreements in this case was governed by the

Federal Arbitration Act, rather than Nebraska state law, 3) by finding that the document entitled Reinsurance Participation Agreement had an enforceable agreement delegating to an arbitrator the authority to decide whether disputes arising under the Reinsurance Participation Agreement are subject to arbitration when any such agreement would be unenforceable under Neb. Rev. Stat. § 25-2602.01(f)(4), 4) by not finding that the agreement to arbitrate substantive disputes arising under the Reinsurance Participation Agreement is unenforceable under Neb. Rev. Stat. § 25-2602.01(f)(4), and 5) in entering a stay of the case pending arbitration because the district court stayed the case based on erroneous legal conclusions.

Schedule Code
SC