Another Arbitrator Disclosure Cert Petition to be Considered by SCOTUS Today
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At this Friday’s conference, the Justices of the U.S. Supreme Court will consider another certiorari petition raising the proper standard for vacating an arbitration award under the Federal Arbitration Act on grounds of “evident partiality.” The “Issues Presented” in Stone v. Bear, Stearns & Co (Docket No. 13-959), as set out by the petitioner, are as follows:
(1) Whether an arbitrator’s failure to disclose facts creating a reasonable impression of partiality warrants vacating an arbitration award pursuant to 9 U.S.C. § 10(a)(2), or whether an arbitration award should stand despite an arbitrator’s failure to disclose conflicts of interest unless a reasonable person would have to conclude that the arbitrator was partial to one party to the arbitration; and (2) whether a party waives a challenge to an arbitrator’s failure to disclose conflicts of interest only if it knows of the conflicts and fails to raise them during the arbitration, or whether a party waives such a challenge unless it fully investigates the arbitrator’s undisclosed conflicts, and objects to the arbitrator’s participation, during the arbitration.
I caution that the facts in Stone are quite idiosyncratic. Moreover, due to the presence of the waiver issue, the dispute may not present a clear case for resolution of the split between the Circuits over a broader “reasonable impression” test vs. a stricter “a reasonable person would have to conclude that the arbitrator was partial” test. Assuming the usual schedule for Supreme Court review of a certiorari petition, we will learn on Monday morning whether or not the cert petition is granted.
The documents in the case, including the 3rd Circuit unpublished per curiam opinion rejecting the “evident partiality” attack on the arbitration award, can be found here for those who are interested –www.scotusblog.com/
Tags: Arbitration Award, certiorari petition
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