Apparent Bias In Arbitration – Avoiding And Challenging It

In a much anticipated decision, the UK Supreme Court has considered to what extent arbitrators can accept appointments in overlapping arbitrations without giving rise to an appearance of bias, and to what extent they can do so without disclosure.

We consider what the decision means both for arbitrators seeking to avoid an appearance of bias, and parties seeking to challenge apparent bias.

Arbitrator impartiality

Impartiality is a core principle of arbitration law. Section 1 of the Arbitration Act 1996 provides that the object of arbitration is to obtain the fair resolution of disputes by an impartial tribunal and, under s.33 of the Act, arbitrators owe a general duty to act fairly and impartially as between the parties. Where circumstances exist that give rise to justifiable doubts as to an arbitrator's impartiality, a party can apply to the court under s.24 of the Act to remove that arbitrator.