LD 1218
pg. 46
Page 45 of 94 An Act To Enact the Revised Uniform Arbitration Act Page 47 of 94
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LR 468
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and to the arbitration proceeding and to any other arbitrators.
If the parties are represented by counsel or other authorized
persons, the arbitrators can make such representations to those
individuals.

 
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.

 
Section 12(d) involves instances other than "a known, direct,
and material interest in the outcome of the arbitration
proceeding or a known, existing, and substantial relationship
with a party" of an arbitrator's failure to disclose that do
not create a rebuttable presumption of evident partiality by a
neutral arbitrator but nevertheless may be a ground for
vacatur under Section 23(a)(2).

 
Section 12(c) covers instances where the arbitrator makes a
required disclosure, a party objects to that arbitrator's
service, but the arbitrator overrules the objection and
continues to serve. In the situation of a disclosed interest
or relationship, the presumption of evident partiality in
Section 12(d) does not apply even if the disclosure involved
"a known, direct, and material interest in the outcome of the
arbitration proceeding or a known, existing, and substantial
relationship
with a party."


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