District Court Erred in Intervening in Arbitration on Basis of ‘Evident Partiality,’ 9th Cir. Rules

SAN FRANCISCO — A District Court did not have the authority to intervene in an ongoing arbitration due to an arbitrator’s alleged evident partiality, a federal appeals court has ruled, finding an “extreme case” warranting intervention did not exist.

On Jan. 27, the 9th Circuit U.S. Court of Appeals directed the trial court to vacate its order disqualifying the arbitrator. The appellate court found that even if the arbitrator’s activities created a reasonable impression of partiality, the trial court's concern that delays and expenses would result if an arbitration award were vacated did not justify an intervention.

Hundreds of …