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June 21, 2006
Arbitrator’s Early Withdrawal Leaves Parties Unsatisfied
Two commercial entities who had signed an arbitration agreement retained JAMS/Endispute and arbitrator John B. Bates to arbitrate their dispute. At the conclusion of the arbitration hearing, Bates apparently announced that he was withdrawing as arbitrator, but that he was willing to continue to work with the parties as mediator. Bates provided no ethical reason for his withdrawal. One of the parties sued JAMS and Bates for breach of contract; Bates raised arbitral immunity as a defense. The court rejected the defense, finding that Bates’s early withdrawal “defeats rather than serves the adjudicatory purpose of arbitration” underlying the immunity defense.
The case is Morgan Phillips, Inc. v. JAMS/Endispute, L.L.C., ___ Cal.Rptr.3d ___ (Cal. App. 2 Dist. June 20, 2006).
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June 21, 2006 in Arbitration | Permalink
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Comments
Looks like the pro arbitration bias has really come a long way... I wonder what must be the law in China where only instituional arbitration are facilitated by law...I guess they must be having some strong rules for arbitral immunity. Can anyone tell me whats China's say on such a position?
Posted by: Mala Sharma | Sep 25, 2008 12:22:33 PM
