Challenging Arbitrators: An Update From The Austrian Supreme Court

On 23 July 2020, the Austrian Supreme Court (Oberste Gerichtshof, OGH) rendered its decision in 18 ONc 1/20x,¹ in which it considered a (repeated) challenge of an arbitrator in a VIAC proceeding.

Facts

The Respondent in the arbitral proceeding had already unsuccessfully objected to the arbitrator's appointment on a prior occasion. Drawing on Article 20 of the Vienna Rules, the Respondent had expressed doubt over impartiality and independence in their first formal challenge in May 2019.

The VIAC Board, which has jurisdiction to rule on a challenge if the arbitrator does not resign, denied the request in June 2019. In early 2020, the arbitrator was named as a member of the VIAC Board. Citing additional, new concerns over impartiality and independence, the Respondent once again challenged the appointment of the arbitrator, yet was once more denied this request in March 2020 by the VIAC Board.