March 2, 2011

SKO Defeats Cert Petition at United States Supreme Court

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SKO successfully represented its client, the Rehabilitator of AIK Comp, in its auditing malpractice claim against Ernst & Young by defeating Ernst & Young’s Petition for Writ of Certiorari at the United States Supreme Court.  In its Petition, Ernst & Young sought to appeal a decision of the Kentucky Supreme Court which affirmed the Franklin Circuit Court’s decision to deny Ernst & Young’s motion to compel arbitration with the Rehabilitator.  Specifically, the Kentucky Supreme Court applied federal law, the McCarran–Ferguson Act, to prevent the Federal Arbitration Act from preempting Kentucky state insurance law.  SKO argued that the Kentucky Supreme Court’s application of federal law was correct and consistent with federal law on the issue. The Supreme Court denied Ernst & Young’s Petition.  See Ernst & Young, LLP v. Clark, 323 S.W.3d 682 (Ky. 2010), cert. denied —S. Ct. —, 2011 WL 588978 (Feb. 22, 2011) (No. 10-693).

A copy of SKO’s brief on behalf of AIK Comp can be found here.