| 4. Sections 12(c), (d), and (e) seek to accommodate the |
tensions between concepts of partiality and the need for |
experienced decision makers, as well as the policy of relative |
finality in arbitral awards. Therefore, in Section 12(e) a |
neutral arbitrator's failure to disclose "a known, direct, and |
material interest in the outcome or a known, existing, and |
substantial relationship with a party," gives rise to a |
presumption of "evident partiality" under Section 23(a)(2). |
Cf. Minn. Stat. Ann. § 572.10(2) (1998) (failure to disclose |
conflict of interest or material relationship is grounds for |
vacatur of award). A person who has this type of interest or |
relationship, in the absence of agreement by the parties, is |
not to serve as a neutral arbitrator under Section 11(b). |
Failure to disclose that type of interest or relationship |
creates the presumption of vacatur in Section 23(a)(2). In |
such cases, it is then the burden of the party defending the |
award to rebut the presumption by showing that the award was |
not tainted by the non-disclosure or there in fact was no |
prejudice. See, e.g., Drinane v. State Farm Mut. Auto Ins. |
Co., 153 Ill. 2d 207, 214-16, 606 N.E.2d 1181, 1184-85, 180 |
Ill. Dec. 104, 107-08 (1992). A party-appointed, non-neutral |
arbitrator's failure to disclose would be covered under the |
corruption and misconduct provisions of Section 23(a)(2) |
because in most cases it is presumed that a party arbitrator |
is intended to be partial to the side which appointed that |
person. |