Impartiality of an Arbitrator and Improper Constitution of the
Tribunal
This article discusses a specific ground, improper constitution
of the arbitral tribunal, for challenge of an arbitral award in the
Courts of the lex arbitri.
The Bundesgerichtshof, German Federal Supreme Court has
recently set aside an arbitral award rendered by a three member
arbitral tribunal on the grounds that the tribunal was improperly
constituted as one of the arbitrators was successfully challenged
in Court but only after the Tribunal had rendered a unanimous
decision and handed down the award.
The decision was rendered in December 2014, in the case of I ZB
23/14. The dispute arose out of a lease agreement for a thermal
bath. In accordance with the agreement a three member tribunal was
appointed to resolve the dispute with each Party nominating an
arbitrator and the two arbitrators together appointing the
Chairperson. The Tribunal was seated in Germany.
