§ 1-569.12. Disclosure by arbitrator. - North Carolina Statutes

§ 1‑569.12.  Disclosureby arbitrator.

(a)        Before acceptingappointment, an individual who is requested to serve as an arbitrator, aftermaking a reasonable inquiry, shall disclose to all parties to the agreement toarbitrate and to the arbitration proceeding and to any other arbitrators anyknown facts that a reasonable person would consider likely to affect theimpartiality of the arbitrator in the arbitration proceeding, including:

(1)        A financial orpersonal interest in the outcome of the arbitration proceeding; and

(2)        An existing or pastrelationship with any of the parties to the agreement to arbitrate or to thearbitration proceeding, their counsel or representatives, a witness, or otherarbitrators.

(b)        An arbitrator has acontinuing obligation to disclose to all parties to the agreement to arbitrateand to the arbitration proceeding and to any other arbitrators any facts thatthe arbitrator learns after accepting appointment which a reasonable personwould consider likely to affect the impartiality of the arbitrator.

(c)        If an arbitratordiscloses a fact required by subsection (a) or (b) of this section to bedisclosed and a party timely objects to the appointment or continued service ofthe arbitrator based upon the fact disclosed, the objection may be a groundunder G.S. 1‑569.23(a)(2) for vacating an award made by the arbitrator.

(d)        If the arbitratordid not disclose a fact as required by subsection (a) or (b) of this section,upon timely objection by a party, the court under G.S. 1‑569.23(a)(2) mayvacate an award.

(e)        An arbitratorappointed as a neutral arbitrator who does not disclose a known, direct, andmaterial interest in the outcome of the arbitration proceeding or a known,existing, and substantial relationship with a party is presumed to act withevident partiality under G.S. 1‑569.23(a)(2).

(f)         If the parties toan arbitration proceeding agree to the procedures of an arbitrationorganization or any other procedures for challenges to arbitrators before anaward is made, substantial compliance with those procedures is a conditionprecedent to a motion to vacate an award on that ground under G.S. 1‑569.23(a)(2).(2003‑345,s. 2.)