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Second Circuit Court Differentiates the Standard for Determining Evident Partiality for a Neutral Arbitrator and a Party-Appointed Arbitrator

The Second Circuit Court held, in a case of first impression, that a party-appointed arbitrator should not be held to the same standard of evident partiality as a neutral arbitrator. The holding of Certain Underwriting Members of Lloyds of London v. Fla., Dep’t of Fin. Servs., No. 17-1137-CV, 2018 WL 2727492 (2d Cir. June 7, 2018) is significant because many insurance policies allow the policyholder and insurer to each appoint its own appraiser or arbitrator in addition to the neutral arbitrator for dispute resolution. When appointing an arbitrator, a party usually expects their appointed arbitrator to advocate for them. The Second Circuit mirrored these expectations and noted that holding a party-appointed arbitrator to the same standards as a neutral arbitrator would disregard the purpose of a party-appointed arbitrator to advocate for the party appointing it.

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Jul 17, 2018
Celia B. Waters (Keniry)