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challenging the appointment of an arbitrator and accordingly set
forth disclosure requirements for arbitrators. 8
There is a leading American case on disclosure by arbitrators:
Commonwealth Coatings Corporation v. Continental Casualty Company. 9
This case held that arbitrators are required to disclose any interests or
relationships that may lead to partiality. Justice White had a concurring
opinion that an arbitrator should not be automatically disqualified
for having had a business relationship with a party if both parties are
informed, or not informed but the matter is trivial.
However, in the United States, a breach of ethical standards, as
promulgated in arbitration rules, is not a sufficient judicial basis for
setting aside an arbitration award because arbitration rules and codes
of conducts do not have the force of law.
f. Duty to Act Professionally
This duty is very broad. For example, during a hearing, it is permissible
for an arbitrator to ask questions, call witnesses and request documents
or other evidences when the arbitrator feels that insufficient evidences
have been provided to decide the case. In addition, although an arbitrator
may not exert pressure on any party to settle a case, the arbitrator may
suggest that the parties discuss the possibility of settlement. However,
the arbitrator should not switch the role to a mediator by participating
in the settlement discussions.
8. Henry Gabriel, Anjanette H. Raymond; Ethics for Commercial Arbitrators: Basic Principles
and Emerging Standards. 5 Wyo. L. Rev. 453.
9. Commonwealth Coatings Corp. v. Cont’l Cas. Co., 393 U.S. 145 (1968), cert. granted, 390
U.S. 979 (1968), reh’g denied, 390 U.S. 1036 (1968).
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