LD 1218
pg. 40
Page 39 of 94 An Act To Enact the Revised Uniform Arbitration Act Page 41 of 94
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LR 468
Item 1

 
are intended to cover arbitration among both principals and
third-party beneficiaries of either the same agreement to
arbitrate or separate agreements, such as guarantees, which
incorporate by reference the arbitration provisions in the
underlying contract. See, e.g., Compania Espanola de Petroleos
v. Nereus Shipping Co., 527 F.2d 966 (2d Cir. 1975), cert.
denied, 426 U.S. 936 (1976); but see United Kingdom v. Boeing
Co., 988 F.2d 68 (2d Cir. 1993).

 
5. A party cannot appeal a lower court decision of an order
granting or denying consolidation under Section 28, regarding
appeals, because the policy behind Section 28(a)(1) and (2) is
not to allow appeals of orders that result in delaying
arbitration. Whether consolidation is ordered or denied, the
arbitrations likely will continue - either separately or in a
consolidated proceeding - and to allow appeals would delay the
arbitration process.

 
§8711.__Appointment of arbitrator; service as neutral
arbitrator

 
1.__Appointment.__If the parties to an agreement to
arbitrate agree on a method for appointing an arbitrator, that
method must be followed, unless the method fails.__If the
parties have not agreed on a method, the agreed method fails
or an arbitrator appointed fails or is unable to act and a
successor has not been appointed, the court, on motion of a
party to the arbitration proceeding, shall appoint the
arbitrator.__An arbitrator so appointed has all the powers of
an arbitrator designated in the agreement to arbitrate or
appointed pursuant to the agreed method.

 
2.__Ineligible to serve as arbitrator.__An individual who
has a known, direct and material interest in the outcome of
the arbitration proceeding or a known, existing and
substantial relationship with a party may not serve as an
arbitrator required by an agreement to be neutral.

 
Uniform Comment

 
1. Because Section 11 is a waivable provision under Section
4(a), parties may choose their own method of selecting an
arbitrator under Section 11(a). Parties oftentimes choose an
arbitrator because of that person's knowledge or experience or
relationship to the parties. This is particularly the case
with non-neutral arbitrators who are sometimes chosen because
of their relationship to a party and may have a direct
interest
in the outcome. Section 11(b) does not apply to non-neutral
arbitrators but only to neutral arbitrators. Moreover, because
Section 11(b)


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