Arbitrator's Objective Duty To Disclose Under UNCITRAL Model Law Does Not Require Consideration Of Parties' Subjective Expectations

The Court of Appeal for Ontario's recent decision i nAroma Franchise Company, Inc. v. Aroma Espresso Bar Canada Inc.,¹ confirms that the legally mandated duty to disclose in Article 12(1) of the Model Law² is an objective standard.

The Court disagreed with the application judge, holding that in circumstances where counsel for one party to an ongoing arbitration appoints the same arbitrator for an unrelated arbitration, the arbitrator does not have a duty to disclose under Article 12(1).

Relevant facts

After a dispute arose under a Master Franchise Agreement (MFA), the appellants and respondents proceeded to an international commercial arbitration (the MFA Arbitration). The MFA provided that the arbitration would be governed by the Model Law.