199 ARBITRATION LAW Factual Background of the Dispute In 2010, Deepwater Horizon drilling rig in the Gulf of Mexico was damaged due to a massive explosion and fire. The rig was owned by Transocean, who held a Bermuda Form excess liability insurance policy with Chubb Bermuda Insurance Ltd (“Chub”). Halliburton Company (“Halliburton”), which also held a Bermuda Form insurance policy, provided cementing and well-monitoring services to the drilling rig. Several claims were brought against Halliburton and Transocean due to the damage caused by the explosion at the rig. The claims that were brought against these two companies were eventually settled. Halliburton and Transocean asked Chubb for compensation under their excess liability insurance policies. However, Chubb refused to pay, arguing that the claims were not reasonably settled. Ultimately, the parties found themselves engaged in multiple arbitrations arising out of the same incident. The first arbitration was between Halliburton and Chubb. The Bermuda Form excess liability insurance policy between Halliburton and the predecessor of Chubb was governed by New York law and provided for ad hoc arbitration seated in London. The parties agreed on an arbitral tribunal composed of three arbitrators. The chairman of the tribunal was to have been selected by the English High Court, should the party-appointed arbitrators fail to do so. In June, 2015, the English High Court appointed an arbitrator (referred to as “A”), as chairman. Even though A was previously proposed by Chubb during the selection of arbitrators, and denied by Halliburton at the time, Halliburton did not appeal against the decision of the English High Court. The second arbitration was held between Transocean and Chubb to settle the insurance policy related dispute arising out of the Deepwater Horizon incident. In December, 2015, Chubb nominated A as its party-appointed arbitrator. Even though A disclosed to Transocean his prior appointment as chairman in the first arbitration, he failed to disclose to Halliburton his subsequent appointment by Chubb in the second arbitration.
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