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Insurance Coverage Litigation Newsletter - Fall 2020

Reversing Reverse Preemption:The Applicability of Arbitration Clausesin Risk Retention Group Policies, by Sarah E. Cornwell Esq. - In most areas of law, the ironclad enforceability of an arbitration provision is aforegone conclusion. Although arbitration clauses offer many benefits to litigants,such as a streamlined procedure and faster dispute resolution, they recently havebeen subject to criticism by activists and some lawmakers, specifically for their usein consumer and non-union employment contracts. The grounds for the criticism arethat they act as a barrier to the courts, insolate parties from class actions, and silencevictims of sexual harassment, as arbitrations are confidential. Notwithstanding thesecriticisms, the Supreme Court of the United States has steadfastly upheld arbitrationprovisions’ validity and enforceability under the Federal Arbitration Act (“FAA”).1

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