§ 172.056.Disclosure of Grounds for Challenge

The longest section in this subchapter, and the most demanding disclosure rule in either arbitration chapter.

The duty attaches early. It runs from the moment a person is contacted in connection with a possible appointment, not only from appointment itself.

The deadline is 21 days after the contact, appointment or designation.

The standard is broad. Any information that might cause the person’s impartiality or independence to be questioned must be disclosed.

The first category is the person’s own involvement — personal bias or prejudice, personal knowledge of a disputed evidentiary fact, prior service as an attorney in the matter, association with someone who participated, having been a material witness, or prior service as arbitrator or conciliator in another proceeding involving a party.

Close relationships are covered in detail, reaching a person who is or was a party or an officer, director or trustee of one, who acted as an attorney or representative, who expects to be nominated as an arbitrator, whose interests could be substantially affected, or who is likely to be a material witness.

Financial interests come next, held individually or as a fiduciary, and including those of a spouse or a minor child residing in the household.

Family relationships reach the third degree, covering the person, the spouse, anyone within the third degree of relationship to either, and that person’s spouse.

Waiver is allowed, with one exception. The parties may agree to waive disclosure, but not for a person serving as the sole arbitrator or conciliator, or as the chief or prevailing one.

That exception protects the deciding seat. Disclosure by the person whose vote decides the case is not something the parties can contract away.

The duty continues throughout. After appointment and during the proceeding, an arbitrator or conciliator must promptly disclose any covered circumstance not previously disclosed.