The case of the day is McDonnel Group, LLC v. Great Lakes Insurance SE, UK Branch (5th Cir. 2019). McDonnel purchased a builder’s risk policy from a group of insurers. When the insurers denied a claim, McDonnel sued. The insurers argued that the case had to be arbitrated, because the insurance policy contained an agreement to arbitrate. But the policy also had a provision stating: “In the event any terms of this Policy are in conflict with the statutes of the jurisdiction where the Insured Property is located, such terms are amended to conform to such statutes.” A Louisiana statute, § 22:868, forbade agreements to arbitrate in certain insurance contracts covering property in the state. Prior cases had already held that the New York…

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