Disclosure by proposed arbitrators and conciliators; waiver of disclosure; grounds for challenge.

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(a) The person has a personal bias or prejudice concerning a party or personal knowledge of the disputed evidentiary facts concerning the proceeding.

(b) The person served as a lawyer in the matter in controversy, or the person is or has been associated with another who has participated in the matter during such association, or the person has been a material witness concerning it.

(c) The person served as an arbitrator or conciliator in another proceeding involving one or more of the parties to the proceeding.

(d) The person, individually or as a fiduciary, or the person’s spouse or minor child, or anyone residing in the person’s household, has a financial interest in the subject matter in controversy or in a party to the proceeding, or any other interest that could be substantially affected by the outcome of the proceeding.

(e) The person, the person’s spouse or minor child, anyone residing in the person’s household, any individual within the third degree of relationship to any of them, or the spouse of any of them, meets any of the following conditions:

(A) The person is or has been a party to the proceeding, or an officer, director or trustee of a party.

(B) The person is acting or has acted as a lawyer in the proceeding.

(C) The person is known to have an interest that could be substantially affected by the outcome of the proceeding.

(D) The person is likely to be a material witness in the proceeding.

(f) The person has a close personal or professional relationship with a person who meets any of the following conditions:

(A) The person is or has been a party to the proceeding, or an officer, director or trustee of a party.

(B) The person is acting or has acted as a lawyer or representative in the proceeding.

(C) The person is or expects to be nominated as an arbitrator or conciliator in the proceedings.

(D) The person is known to have an interest that could be substantially affected by the outcome of the proceeding.

(E) The person is likely to be a material witness in the proceeding.

(2) The obligation to disclose information set forth in subsection (1) of this section is mandatory and cannot be waived by the parties with respect to persons serving either as the sole arbitrator or sole conciliator or as one of two arbitrators or conciliators or as the chief or prevailing arbitrator or conciliator. The parties may otherwise agree to waive such disclosure.

(3) From the time of appointment and throughout the arbitral proceedings, an arbitrator shall, without delay, disclose to the parties any circumstances referred to in subsection (1) of this section which were not previously disclosed.

(4) Unless otherwise agreed by the parties or allowed by the rules governing the arbitration, an arbitrator may be challenged only if circumstances exist that give rise to justifiable doubts as to the independence or impartiality of the arbitrator, or as to possession of the qualifications upon which the parties have agreed.

(5) A party may challenge an arbitrator appointed by it, or in whose appointment it has participated, only for reasons of which it becomes aware after the appointment has been made. [1991 c.405 §15]


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