Opinion ID: 1436064
Heading Depth: 1
Heading Rank: 28

Heading: Whether This Particular Dispute Falls Within the Scope of Century and Lloyd's Valid Agreement to Arbitrate

Text: Having determined that there was a valid agreement to arbitrate between Century and Lloyd's, we turn to the second and we think easier aspect of the first fundamental issue in this case: whether the particular dispute in this case falls within the scope of that agreement. See Kirleis, 560 F.3d at 160. Regarding this question, there is a presumption of arbitrability in the sense that [a]n order to arbitrate the particular grievance should not be denied unless it may be said with positive assurance that the arbitration clause is not susceptible of an interpretation that covers the dispute. AT & T Techs., 475 U.S. at 650, 106 S.Ct. at 1419 (internal quotation marks and citations omitted) (alteration in original). See also Rohm & Haas, 522 F.3d at 331 (citing AT & T Techs. ). We have held, however, that the presumption of arbitrability does not apply in all circumstances. Where the arbitration provision is narrowly crafted, we cannot presume, as we might if it were drafted broadly, that the parties here agreed to submit all disputes to arbitration. Local 827, Int'l Bhd., 458 F.3d at 310 (internal citation and quotation marks omitted). Century and Lloyd's dispute whether the retrocessional agreements obligated Lloyd's to reimburse Century for payments that Century made to Argonaut to cover expenses under the reinsurance treaties. The reinsurance treaties' arbitration clause, which we are holding that the retrocessional agreements incorporate as against Century and Lloyd's, provides for arbitration of any dispute ... with reference to the interpretation of this Agreement or [the parties'] rights with respect to any transaction involved. App. at 59-60, 101, 127. Rather than excluding various disputes from arbitration, this arbitration clause's scope is broad, and the presumption of arbitrability applies to it. And because this arbitration clause is undoubtedly susceptible of an interpretation that covers the dispute in this case, see AT & T Techs., 475 U.S. at 650, 106 S.Ct. at 1419, we hold that the dispute between Century and Lloyd's over Lloyd's's obligation with respect to the declaratory judgment expenses falls within the scope of their arbitration agreement. Indeed, it seems clear that the arbitration provision was written to cover disputes exactly like the one between the parties here and we would reach our result with or without the presumption of arbitrability.