Oregon Statute Does Not Reverse Preempt Federal Arbitration Act
Post 5208
Read the full article at https://www.linkedin.com/pulse/federal-arbitration-provision-applied-barry-zalma-esq-cfe-9kjmc and at https:/zalma.com/blog plus more than 5200.
Litigation Over Costs to Clean Superfund Site Forced to Arbitration
Federal Arbitration Provision Applied
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Oregon Statute Does Not Reverse Preempt Federal Arbitration Act
Post 5208
Litigation Over Costs to Clean Superfund Site Forced to Arbitration
In Pacificorp et al v. St. Paul Surplus Lines Insurance Company, et al, No. 3:25-cv-00163-AB, United States District Court, D. Oregon (October 7, 2025) Plaintiff PacifiCorp sued its excess liability insurers, for failing to indemnify costs related to the Portland Harbor Superfund Site only to have the suit stayed and arbitration compelled. This case tried to change the ruling.
Arbitration Provision:
The Court interpreted the arbitration provisions in the insurance policies and concluded that the Federal Arbitration Act (FAA) applies. Plaintiff argued that the FAA is reverse preempted by Oregon law.
Court’s Decision:
The Court denied Plaintiff’s Motion for Reconsideration or Clarification of the Court’s Opinion & Order Compelling Arbitration and Staying Proceedings. The Court found that the FAA is not reverse preempted.
Legal Standards and Analysis:
The Court applied Oregon law to interpret the arbitration provision, concluding that the term “may” permits either party to compel arbitration.
DISCUSSION
Plaintiff argued that the Court’s application of the FAA to interpret the Arbitration Provision superseded or displaced Oregon law, thereby triggering reverse preemption under the McCarran-Ferguson Act (“MFA”).
Under 15 U.S.C. § 1012(b), this is known as reverse preemption.
The Court concluded that application of the FAA to the Arbitration Provision did not invalidate, impair, or supersede the OECAA because the FAA does not directly conflict or interfere with the purpose of the OECAA.
Because no provision of the OECAA “explicitly prohibits or regulates the validity of arbitration provisions in insurance policies ….”
Plaintiff argued the opposite. Plaintiff’s argument was flawed.
The Court did not commit clear error in holding that the FAA applies to the Arbitration Provision.
CONCLUSION
The Court denied Plaintiff’s Motion for Reconsideration or Clarification of the Court’s Opinion & Order Compelling Arbitration and Staying Proceedings.
ZALMA OPINION
Although Oregon law applied it did not exempt or defeat the requirements of the Federal Arbitration Act applied. The litigation is properly stopped and the parties are ordered to arbitration in accordance with the policy language and the language of the Federal Arbitration Act.
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Convicted Criminal Seeks to Compel Receiver to Protect his Assets
Post number 5291
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The Work of a Court Appointed Receiver is Constitutionally Protected
In Simon Semaan et al. v. Robert P. Mosier et al., G064385, California Court of Appeals, Fourth District, Third Division (February 6, 2026) the Court of Appeals applied the California anti-SLAPP statute which protects defendants from meritless lawsuits arising from constitutionally protected activities, including those performed in official capacities. The court also considered the doctrine of quasi-judicial immunity, which shields court-appointed receivers from liability for discretionary acts performed within their official duties.
Facts
In September 2021, the State of California filed felony charges against Simon Semaan, alleging violations of Insurance Code section 11760(a) for making...
When There are Two Different Other Insurance Clauses They Eliminate Each Other and Both Insurers Owe Indemnity Equally
Post number 5289
In Great West Casualty Co. v. Nationwide Agribusiness Insurance Co., and Conserv FS, Inc., and Timothy A. Brennan, as Administrator of the Estate of Pat- rick J. Brennan, deceased, Nos. 24-1258, 24-1259, United States Court of Appeals, Seventh Circuit (February 11, 2026) the USCA was required to resolve a dispute that arose when a tractor-trailer operated by Robert D. Fisher (agent of Deerpass Farms Trucking, LLC-II) was involved in a side-impact collision with an SUV driven by Patrick J. Brennan, resulting in Brennan’s death.
Facts
Deerpass Trucking, an interstate motor carrier, leased the tractor from Deerpass Farms Services, LLC, and hauled cargo for Conserv FS, Inc. under a trailer interchange agreement. The tractor was insured by Great West Casualty Company with a $1 million policy limit, while the trailer was insured by Nationwide Agribusiness Insurance Company with a $2 million ...
Opiod Producer Seeks Indemnity from CGL Insurers
Post number 5288
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Insurers Exclude Damages Due to Insured’s Products
In Matthew Dundon, As The Trustee Of The Endo General Unsecured Creditors’ Trust v. ACE Property And Casualty Insurance Company, et al., Civil Action No. 24-4221, United States District Court, E.D. Pennsylvania (February 10, 2026) Matthew Dundon, trustee of the Endo General Unsecured Creditors’ Trust, sued multiple commercial general liability (CGL) insurers for coverage of opioid-related litigation involving Endo International PLC a pharmaceutical manufacturer.
KEY FACTS
Beginning as early as 2014, thousands of opioid suits were filed by governments, third parties, and individuals alleging harms tied to opioid manufacturing and marketing.
Bankruptcy & Settlements
Endo filed Chapter 11 in August 2022; before bankruptcy it ...
Passover for Americans
Posted on February 19, 2026 by Barry Zalma
“The Passover Seder For Americans”
For more than 3,000 years Jewish fathers have told the story of the Exodus of the enslaved Jews from Egypt. Telling the story has been required of all Jewish fathers. Americans, who have lived in North America for more than 300 years have become Americans and many have lost the ability to read, write and understand the Hebrew language in which the story of Passover was first told in the Torah. Passover is one of the many holidays Jewish People celebrate to help them remember the importance of G_d in their lives. We see the animals, the oceans, the rivers, the mountains, the rain, sun, the planets, the stars, and the people and wonder how did all these wonderful things come into being. Jews believe the force we call G_d created the entire universe and everything in it. Jews feel G_d is all seeing and knowing and although we can’t see Him, He is everywhere and in everyone.We understand...
Passover for Americans
Posted on February 19, 2026 by Barry Zalma
Read the full article at https://www.linkedin.com/pulse/passover-americans-barry-zalma-esq-cfe-5vgkc.
“The Passover Seder For Americans”
For more than 3,000 years Jewish fathers have told the story of the Exodus of the enslaved Jews from Egypt. Telling the story has been required of all Jewish fathers. Americans, who have lived in North America for more than 300 years have become Americans and many have lostthe ability to read, write and understand the Hebrew language in which the story of Passover was first told in the Torah.
Passover is one of the many holidays Jewish People celebrate to help them remember the importance of G_d in their lives. We see the animals, the oceans, the rivers, the mountains, the rain, sun, the planets, the stars, and the people and ...
You Get What You Pay For – Less Coverage Means Lower Premium
Post number 5275
Posted on January 30, 2026 by Barry Zalma
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When Experts for Both Sides Agree That Two Causes Concur to Cause a Wall to Collapse Exclusion Applies
In Lido Hospitality, Inc. v. AIX Specialty Insurance Company, No. 1-24-1465, 2026 IL App (1st) 241465-U, Court of Appeals of Illinois (January 27, 2026) resolved the effect of an anti-concurrent cause exclusion to a loss with more than one cause.
Facts and Background
Lido Hospitality, Inc. operates the Lido Motel in Franklin Park, Illinois. In November 2020, a windstorm caused one of the motel’s brick veneer walls to collapse. At the time, Lido was insured under a policy issued by AIX Specialty Insurance Company which provided coverage for windstorm damage. However, the policy contained an exclusion for any loss or damage directly or indirectly resulting from ...