August 21, 2020 Articles

Arbitrators Must Disclose Ownership Interest

Arbitrator disclosure of an economic interest does not suffice as constructive notice of an ownership interest for parties to make an informed decision for waiver.

By Jeanine Telfer

The Ninth Circuit vacated an arbitrator’s award, finding that a distributor did not waive its evident partiality claim, and held that arbitrators must disclose an ownership interest in arbitration organizations. See Monster Energy Co. v. City Beverages, 940 F.3d 1130 (9th Cir. 2019), cert. denied (U.S. June 29, 2020) (No. 19-1333). 

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