Investors Equity Life Insurance Co. of Hawaii, Ltd. v. ADM Investor Services, Inc.
Opinion
Lead Opinion
MEMORANDUM *
ADM Investor Services (“ADM”) appeals the district court’s order affirming *711 the American Arbitration Association Panel’s (“Panel”) award of $6.9 million in damages to the Insurance Commissioner of the State of Hawaii, as Liquidator (“Liquidator”) for Investors Equity Life Insurance Co. (“IEL”). We have jurisdiction under 28 U.S.C. § 1291 , and affirm.
The district court did not err in finding that in the arbitration proceeding the Liquidator asserted derivative claims on behalf of IEL, rather than independent claims belonging to IEL’s creditors, policyholders, and annuitants. The Liquidator specifically sought recovery of trading losses, commissions, and fees suffered by IEL. It was authorized to prosecute all claims on behalf of the insurer, IEL. See Haw.Rev.Stat. § 431:15-310(a)(12). The arbitration award was not directly awarded to IEL’s creditors, policyholders, and annuitants. Their recovery, if any, depended on the outcome of an independent liquidation proceeding. Therefore the district court correctly concluded that the Panel did not act in manifest disregard of the law in finding that the Liquidator was entitled to assert a claim against ADM.