Recent Cases on the Reach of the S.C. and Federal Arbitration Acts
The Fourth Circuit Court of Appeals and the Supreme Court of South Carolina recently have had occasion to consider the interplay of the South Carolina Uniform Arbitration Act (“SCUAA”) with the Federal Arbitration Act (“FAA”) and the requirements of an international treaty. The Convention Act Trumps The McCarran-Ferguson Act and the SCUAA In ESAB Group Inc. v. Zurich Insurance, PLC , a group of insurers refused to defend and indemnify ESAB Group in a number of product liability actions. ESAB Group is a foreign-owned company, but also a South Carolina-based manufacturer of welding materials and equipment. ESAB Group sued these insurers in state court in Florence seeking coverage under several insurance policies, and the insurers removed the case to federal court. Magistrate Judge Rogers referred all claims related to the insurance policies to arbitration in Sweden based upon the arbitration agreements contained therein, and ESAB Group appealed that decision. The Fourth Cir