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An arbitrator's previous role as a volunteer mediator in a dispute where one of the parties' counsel had represented a third party is not required disclosure, a California state court held.
In Guseinov v. Burns, Nos. B188984, B191645, 2006 WL 3691602 (Cal. Ct. App., Dec. 15, 2006), Burns discovered that the arbitrator had previously served as a volunteer mediator in an unrelated matter where plaintiff's counsel had represented a party. This fact was disclosed to both parties' attorneys prior to the arbitration, but Burns did not learn of it until the arbitration had already commenced.
Burns filed a petition to vacate the arbitration award, but the Court denied it and granted Guseinov's petition to confirm the award. Under California law, courts may vacate an arbitration award if it finds that the arbitrator failed to disclose grounds for disqualification. CAL. CIV. PROC. CODE §1286.2.
However, Burns failed to point to any disclosure that the arbitrator was required to make. Since the arbitrator was not paid for his service as a mediator in the previous matter involving Guseinov's attorney, this fact was not a required disclosure under Standard 7(d)(5) of the Ethics Standards for Neutral Arbitrators in Contractual Arbitration. CAL. CIV. PROC. CODE §1286.9(a)(2).
Also, the arbitrator did not fail to disclose a "professional relationship" with Guseinov's counsel, since the prior mediation was an isolated incident of which the arbitrator had no recollection. CAL. CIV. PROC. CODE §1286.9(a)(6). Finally, there were no facts that would cause a reasonable person to entertain doubt as to whether the arbitrator was impartial. CAL. CIV. PROC. CODE §1286.9(a)(1); §170.1(a)(6)(A)(iii).
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