American Zurich Insurance Co. v. Sun Holdings, Inc.

Plaintiff filed a lawsuit seeking to enforce an order entered against the defendant pursuant to a mandatory arbitration requirement contained in a dispute-resolution clause of an insurance policy issued by the plaintiff. Defendant argued that the arbitrators had exceeded their authority by directing defendant to pay the attorneys fees of the plaintiff insurance company. The district court ordered defendant to pay the award in full, defendant appealed, and the Seventh Circuit affirmed. The Seventh Circuit also noted that the defendant was barred from challenging the arbitrators’ findings of fact or legal conclusions under the Federal Arbitration Act and ordered defendant to show cause as to why it should not be sanctioned for bringing a frivolous appeal. (KIRSCH and LEE, concurring)