“Arbitration vs. Litigation: More Than Just a Preference for RWI Policyholders”

A New York court’s recent decision in WPP Group USA, Inc. v. RB/TDM Investors, LLC et al provides a point of reference for this JD Supra article by Ann Terrell Dorsett, Stephen Foresta, Aaron Jaroff and Lee Royster of McGuire Woods, in which they discuss the importance to purchasers of representations and warranties insurance policy of considering the pros and cons of insurance in negotiating the terms of the policy. In this particular matter, the policy provided the insured with the option of proceeding in court or arbitration, thereby enabling the policyholder to make the determination at the time the claim arose rather than committing to a particular path when the policy was put into effect.