LD 1218
pg. 42
Page 41 of 94 An Act To Enact the Revised Uniform Arbitration Act Page 43 of 94
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LR 468
Item 1

 
5.__Presumption of evident partiality.__An arbitrator appointed
as a neutral arbitrator who does not disclose a known, direct
and material interest in the outcome of the arbitration
proceeding or a known, existing and substantial relationship
with a party is presumed to act with evident partiality under
section 8723, subsection 1, paragraph B.

 
6.__Substantial compliance.__If the parties to an
arbitration proceeding agree to the procedures of an
arbitration organization or any other procedures for
challenges to arbitrators before an award is made, substantial
compliance with those procedures is a condition precedent to a
motion to vacate an award on that ground under section 8723,
subsection 1, paragraph B.

 
Uniform Comment

 
1. The notion of decision making by independent neutrals is
central to the arbitration process. The UAA and other legal
and ethical norms reflect the principle that arbitrating
parties have the right to be judged impartially and
independently. III Macneil Treatise § 28.2.1. Thus, Section
12(a)(4) of the UAA provides that an award may be vacated
where "there was evident partiality by an arbitrator appointed
as a neutral or corruption in any of the arbitrators or
misconduct prejudicing the rights of any party." See RUAA
Section 23(a)(2); FAA Section 10(a)(2). This basic tenet of
procedural fairness assumes even greater significance in light
of the strict limits on judicial review of arbitration awards.
See Drinane v. State Farm Mut. Auto Ins. Co., 153 Ill. 2d 207,
212, 606 N.E.2d 1181, 1183, 180 Ill. Dec. 104, 106 (1992)
("Because courts have given arbitration such a presumption of
validity once the proceeding has begun, it is essential that
the process by which the arbitrator is selected be certain as
to the impartiality of the arbitrator.").

 
The problem of arbitrator partiality is a difficult one
because consensual arbitration involves a tension between
abstract concepts of impartial justice and the notion that
parties are entitled to a decision maker of their own
choosing, including an expert with the biases and prejudices
inherent in particular worldly experience. Arbitrating parties
frequently choose arbitrators on the basis of prior
professional or business associations, or pertinent commercial
expertise. See, e.g., Morelite Constr. Corp. v. New York City
Dist. Council Carpenters Benefit Funds, 748 F.2d 79 (2d Cir.
1984); National Union Fire Ins. Co. v. Holt Cargo Sys., Inc.,
______F.Supp. ____ , 2000
WL 328802 (S.D.N.Y. March 28, 2000). The competing goals of
party choice, desired expertise and impartiality must be
balanced by


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