Court Of Appeal Vacates $3 Million Arbitration Award Because Arbitrator Failed To Make Timely Disclosures
The California Court of Appeal has vacated an arbitration award of over $3 million in damages and attorney's fees on the grounds that the arbitrator failed to disclose that he would entertain offers to serve as an arbitrator in other cases involving the parties or their attorneys, and failed to timely disclose that he had been engaged to serve as an arbitrator in a separate arbitration involving the attorneys for one of the parties. While this case did not involve parties in the construction industry, given the prevalence of arbitration agreements in construction contracts, it is noteworthy for construction industry professionals because it illustrates some potential pitfalls of contractual arbitrations.
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