Arbitrators Must Investigate or Disclose, Second Circuit Says: Court Opens Door to Evident Partiality Attacks - Chapter 23 - AAA Handbook on Arbitration Practice

Author(s):

Bethany L. Appleby

Page Count:

6 pages

Media Description:

PDF from "AAA Handbook on Arbitration Practice"

Published:

August, 2010

Jurisdictions:

United States

Practice Areas:

Arbitrators and Arbitral Tribunals,

Responsibility of Arbitrators,

Independence and Impartiality,

Arbitral Process,

Court Decisions,

AAA

Author Detail:

Bethany L. Appleby is a lawyer who represents franchisors in franchise litigation and is a partner in the New Haven, CT., office of Wiggin & Dana LLP.

PDF131.5 KB

$40.00

Description:

Originally from: AAA Handbook on Arbitration Practice

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One of the selling points of arbitration under the Federal Arbitration Act (FAA) is the relative finality of an award. Arbitration awards may be vacated only under limited circumstances. The Second Circuit’s July 9, 2007, ruling in Applied Industrial Materials Corp. v. Ovalar Makine Ticaret Ve Sanaya, A.S., which imposes a duty on arbitrators to either investigate conflicts of interest of which they become aware, or inform the parties that no investigation was undertaken, opened the door a little wider for disgruntled parties to undo an award they do not like based on “evident partiality.”