No Evidence of Bias in $63.6 Million Arbitration Award, Calif. Court Affirms

LOS ANGELES — A California appellate court affirmed confirmation of a $63.6 million arbitration award in a securities dispute, finding the arbitrators did not fail to make the required disclosures that might impede their partiality.

On Feb. 5, the California Court of Appeal, 2nd District, denied Merrill Lynch Professional Clearing Corp.’s motion to vacate the award, finding no evidence of arbitrator impartiality.

Merrill Lynch became the prime broker for hedge funds Rosen Capital Partners LP and Rosen Capital Institutional LP in September 2008. The Funds’ president, Kyle Rosen, and Merrill Lynch executed agreements containing an arbitration provision.

The Funds …