Pacific Reinsurance Management Corp. v. Ohio Reinsurance Corp.

935 F.2d 1019 (1991)

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Pacific Reinsurance Management Corp. v. Ohio Reinsurance Corp.

United States Court of Appeals for the Ninth Circuit
935 F.2d 1019 (1991)

Facts

Ohio Reinsurance Corp. and other companies (collectively, Reinsurance) (plaintiffs) each entered a management agreement with Pacific Reinsurance Management Corp. (PRMC) (defendant), authorizing PRMC to manage reinsurance business on each company’s behalf and as part of a pool. Reinsurance became dissatisfied with PRMC’s practices and sued PRMC for fraud, among other claims. The matter was ordered to arbitration pursuant to the management agreements. The arbitration panel made temporary equitable orders that did not relate to the substance of the parties’ dispute but were intended to preserve Reinsurance’s funds while the arbitration was pending. For example, the panel ordered the retention of outside attorneys to help set up an escrow account for damages that might be due to PRMC under a final arbitration award, and later, the panel issued an interim final order (IFO) that set up the escrow account with balances that would be owed. Reinsurance petitioned the district court to stop the arbitrator’s actions, but the court denied the petition. The court also confirmed the IFO. Reinsurance appealed, arguing that the district court did not have power to review and confirm non-final orders.

Rule of Law

Issue

Holding and Reasoning (Wiggins, J.)

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