LD 1218
pg. 75
Page 74 of 94 An Act To Enact the Revised Uniform Arbitration Act Page 76 of 94
Download Bill Text
LR 468
Item 1

 
procured by corruption, fraud or other undue means, in which
case the motion must be made within 90 days after the ground is
known or by the exercise of reasonable care would have been
known by the movant.

 
3.__Rehearing.__If the court vacates an award on a ground
other than that set forth in subsection 1, paragraph E, it may
order a rehearing.__If the award is vacated on a ground stated
in subsection 1, paragraph A or B, the rehearing must be
before a new arbitrator.__If the award is vacated on a ground
stated in subsection 1, paragraph C, D or F, the rehearing may
be before the arbitrator who made the award or the
arbitrator's successor.__The arbitrator must render the
decision in the rehearing within the same time as that
provided in section 8719, subsection 2 for an award.

 
4.__Confirmation of award.__If the court denies a motion to
vacate an award, it shall confirm the award unless a motion to
modify or correct the award is pending.

 
Uniform Comment

 
A. Comment on Section 23(a)(2), (5), (6), and (c)

 
1. Section 23(a)(2) is based on UAA Section 12(a)(2). The
reason "evident partiality" is a grounds for vacatur only for
a neutral arbitrator is because non-neutral arbitrators,
unless otherwise agreed, serve as representatives of the
parties appointing them. As such, these non-neutral, party-
appointed arbitrators are not expected to be impartial in the
same sense as neutral arbitrators. Macneil Treatise § 28.4.
However, corruption and misconduct are grounds to vacate an
award by both neutral arbitrators and non-neutral arbitrators
appointed by the parties. As to misconduct, before courts will
vacate an award on this ground, objecting parties must
demonstrate that the misconduct actually prejudiced their
rights. Creative Homes & Millwork, Inc. v. Hinkle, 426 S.E.2d
480 (N.C. Ct App. 1993). Courts have not required a showing of
prejudice when parties challenge an arbitration award on
grounds of evident partiality of the neutral arbitrator or
corruption in any of the arbitrators. Gaines Constr. Co. v.
Carol City Ut., Inc., 164 So. 2d 270 (Fl. Dist. Ct. 1964);
Northwest Mech., Inc. v. Public Ut. Comm'n, 283 N.W.2d 522
(Minn. 1979); Egan & Sons Co. v. Mears Park Dev. Co., 414
N.W.2d 785 (Minn. Ct. App. 1987). Corruption is also a ground
for vacatur in Section 23(a)(1) that does not require any
showing of prejudice.

 
2. The purpose of Section 23(a)(5) is to establish that if
there is no valid arbitration agreement, then the award can be
vacated; however, the right to challenge an award on this
ground


Page 74 of 94 Top of Page Page 76 of 94