Texas Supreme Court Vacates $125 Million Award on Basis of Evident Partiality

AUSTIN, Texas — The Texas Supreme Court has vacated a $125 million arbitration award on the basis of evident partiality after finding that one of the arbitrators failed to disclose all of his contacts with counsel for one of the parties and that this nondisclosure was material rather than trivial.

In a May 23 opinion written by Justice Eva Guzman, the court found that the party making the evident partiality challenge was unaware of the undisclosed information; therefore, it did not waive the claim.

Tenaska Energy Inc. sold its interest in a Cleburne, Texas, power plant to Ponderosa Pine Energy. …