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A federal court in California held that absent a showing of actual bias, there can be no finding of partiality on behalf of an arbitrator.
In White v. Mayflower Transit, LLC, No. CV 06-6710 CASPLAX, 2007 WL 1113681 (C.D. Cal. Jan. 02, 2007), Zeddrick White contracted with Mayflower for delivery of personal items. A dispute between the parties was submitted to arbitration and an award was issued in favor of Mayflower. Upon granting Mayflower's motion to confirm the award, the Court directed White to file a second amended complaint including claims undecided by the award. The claims were dismissed with prejudice. See White v. Mayflower Transit, LLC, No. CV 06 6710 CAS PLAX, 2007 WL 926967 (C.D. Cal. Mar. 19, 2007). However, White alleged bias on behalf of the arbitrator, seeking a modification of the award. Mayflower moved to confirm the award.
The Court held that under the Federal Arbitration Act, an award may only be vacated for a limited number of reasons, including arbitrator partiality. 9 U.S.C.A. § 10. A party alleging partiality has the burden of showing its existence. The Court found that White failed to meet this burden. The arbitrator's adoption of Mayflower's reasoning failed to prove actual bias on behalf of the arbitrator. The arbitrator applied the appropriate standard under the applicable law, so no manifest disregard of the law was present. For these reasons, the motion to confirm the award was granted.
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