PRETRIAL ADJUDICATION
...Contract Arbitration
......Modify/Vacate Award: Corruption; Misconduct
.........Business Relationships
 15 Cards On This Topic:
  • USAA requires disclosure of close business connections between arbitrator and party.
  • Where P knew of relationship between arbitration panel and D before signing agreement, legal standard for determining whether vacation justified was actual bias, not impression of bias.
  • Award vacated where arbitrator had listed a partner in law firm involved in legal malpractice arbitration as a reference on his resume, which reasonably could cause an objective observer to doubt his impartiality.
  • When law firm partner represents city dept. at advisory arb. on personnel matter, and city's decisionmaking body later reviews the award, due process prohibits decision maker from being advised by a different partner from same firm.
  • Trial court erred in not vacating arbitration award where arbitrator failed to disclose that counsel for Ds became a member of the firm providing the arbitrator.
  • Trial court's finding that disclosure of arbitrator's firm's representation of company that owed P money was not required was supported by substantial evidence.
  • Interim arb award for Ps properly vacated for arbitrator's nondisclosures, but as arbitrator had issued award before Ds discovered failure to disclose, award could only be vacated under CCP 1286.2.
  • Court not required to vacate arb award on ground it was procured by undue means where P failed to show by clear and convincing evidence that a conflict of interest existed and that it had a substantial impact on panel's decision.
  • Pertinent time for inquiry into bias is before arbitral decision rendered.
  • In two party-arbitrators, one neutral arbitrator setting, bias in party-arbitrator not basis to vacate.
  • Nondisclosure of insignificant prior representation of arbitrator by party's law firm not basis to vacate.
  • Nondisclosure of previous job as depo referee in case in which party's counsel involved not basis to vacate.
  • Nondisclosure by doctor-arbitrator of work as expert for party's attorneys is basis to vacate.
  • Nondisclosure of membership in same professional organization, other insignificant contacts, not basis to vacate.
  • USAA rule adopted in state court, i.e., that neutral arbitrator had legal duty to disclose business dealings which could create impression of possible bias.


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