9th Circ. Ruling Stresses Need For Arbitrator Bias Disclosures

Law360 (November 4, 2019, 2:10 PM EST) -- In Monster Energy Co. v. City Beverages LLC, a split panel of the U.S. Court of Appeals for the Ninth Circuit recently vacated an arbitration award on the ground of so-called evident partiality where the arbitrator failed to disclose his ownership interest in the entity administering the arbitration and the extent to which that entity administered arbitrations on behalf of — and therefore profited from — the winning party.[1]

However, as the dissent correctly noted, "the potential partiality … stems from the very structure of private arbitration [and] is obvious to anyone who understands arbitrators’ general economic interest in repeat business...

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