Greenspoon Marder Bankruptcy Partner Howard Ehrenberg Secures Victory in the Second Circuit Court of Appeals

Apr 23, 2025

Los Angeles, C.A. – April 22, 2025 – Greenspoon Marder is pleased to announce a significant legal victory in the case of Ehrenberg v. Allied World National Assurance Co. (In re Orion Healthcorp Inc.). The United States Court of Appeals for the Second Circuit has upheld the decision of the bankruptcy court, affirming that the liquidating trustee is not compelled to arbitrate a claim against the insurer.

Howard Ehrenberg, a bankruptcy partner at Greenspoon Marder, serves as the trustee in this case. The Second Circuit ruled in favor of Mr. Ehrenberg, affirming the lower court’s decision not to compel arbitration. The court emphasized that arbitration agreements should not be favored over litigation, thereby reinforcing the principle of treating arbitration clauses with the same scrutiny as other contractual terms.

The court’s analysis focused on the insurance policy’s arbitration clause, which was strictly construed. The panel found that the dispute was between the insureds and the insurer, rather than between the policyholder and the insurer. This distinction was pivotal in the court’s determination that the liquidating trustee, acting as the assignee of the insureds, was not bound to arbitrate.

The panel composed of Judges José A. Cabranes, Gerard E. Lynch, and Raymond J. Lohier, Jr., further supported the decision to deny the arbitration motion. This ruling affirms Bankruptcy Judge Alan S. Trust’s original decision, with the district court’s judgment being upheld.

This opinion reflects the Second Circuit’s commitment to treating arbitration agreements as enforceable as other contracts, without creating a bias towards arbitration over litigation. Greenspoon Marder is proud to serve as the general counsel for the overall Orion Case. Another firm handled the appeal, ensuring the interests of the liquidating trustee were effectively represented in this case, which sets a significant precedent for the interpretation of arbitration clauses in insurance policies.

About Greenspoon Marder

Greenspoon Marder LLP is a full-service law firm with over 225 attorneys and more than 20 office locations across the United States. With operations from Miami to New York and from Denver to Los Angeles, our firm attracts some of the nation’s top talent in key markets and innovation hubs. Our core practice areas include Real Estate, Litigation, and Transactional Services, complemented by the capabilities of a full-service firm. Greenspoon Marder has maintained a spot on The American Lawyer’s Am Law 200 as one of the top law firms in the U.S. since 2015, and our goal is to provide exceptional client service by developing a thorough understanding of each client’s business needs and objectives in order to provide strategic, cost-effective solutions.

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Greenspoon Marder Bankruptcy Partner Howard Ehrenberg Secures Victory in the Second Circuit Court of Appeals

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