STORY FROM: Reinsurance & Arbitration
3rd Cir. Adopts ‘Constructive Knowledge’ Approach, Says Party Waived Right to Challenge Arbitration Award
October 14, 2015
PHILADELPHIA — A party has waived its right to challenge an arbitration award because it knew that one of the arbitrators failed to disclose that he had been cited with several regulatory infractions and a felony offense, yet waited to voice its objection until after the award had been issued, a federal appeals court has ruled.
In adopting a “constructive knowledge” approach, the 3rd Circuit U.S. Court of Appeals concluded that a trial court had improperly vacated the award based upon the arbitrator’s nondisclosures.
Goldman Sachs and Athena Venture Partners participated in an arbitration to settle a $1.4 million investment-related ...
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