Jean Schmitz Leonard Schmitz v. Carlos J. Zilveti, III Nicholas S. Meris Prudential-Bache Sec. Inc., AKA Prudential Sec., Inc., 20 F.3d 1043 (9th Cir. 1994). · Go Syfert
Jean Schmitz Leonard Schmitz v. Carlos J. Zilveti, III Nicholas S. Meris Prudential-Bache Sec. Inc., AKA Prudential Sec., Inc., 20 F.3d 1043 (9th Cir. 1994). Cases Citing This Book View Copy Cite
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cited 12× by 12 distinct cases, 1997–2021 · 9 courts↓ Fading · …reasonable impression of partiality. at p. 1046 ✓ Topic ↗
cited 7× by 6 distinct cases, 1997–2024 · 5 courts↓ Fading · …reasonable impression of partiality at p. 1047 ✓ Topic ↗
359 citation events (275 in the last 25 years) across 50 distinct courts.
Strongest positive: Keolis Transit America, Inc. v. Teamsters Union, Local 533 (nvd, 2023-03-27) · Strongest negative: Amoco D.T. Co. v. Occidental Petroleum Corp. (texapp, 2011-05-17)
Treatment trajectory · 1994 → 2026 · click a year to view as-of
1994 2010 2026
Top citers, strongest first. 50 distinct citers. How cited ↗
discussed Cited "but see" Amoco D.T. Co. v. Occidental Petroleum Corp. (2×) also: Cited as authority (rule)
Tex. App. · 2011 · signal: but see · confidence high
But see Schmitz, 20 F.3d at 1049 (determining arbitrator’s failure to disclose his law firm's prior representation of a parent company of one of the parties established the arbitrator’s evident partiality).
discussed Cited "but see" Amoco D.T. Company, Amoco X.T. Company, Amoco Y.T. Company, Swepi LP, Shell Land & Energy Company, Shell Onshore Ventures Inc., Shell K2, Inc., and Shell Everest, Inc. v. Occidental Petroleum Corporation, Occidental Permian Manager, L.L.C., Occidental Permian LTD., and OXY USA, Inc (2×) also: Cited as authority (rule)
Tex. App. · 2011 · signal: but see · confidence high
But see Schmitz , 20 F.3d at 1049 (determining arbitrator’s failure to disclose his law firm’s prior representation of a parent company of one of the parties established the arbitrator’s evident partiality).
discussed Cited as authority (verbatim quote) Keolis Transit America, Inc. v. Teamsters Union, Local 533
D. Nev. · 2023 · signal: see also · quote attribution · 1 verbatim quote · confidence high
evident partiality is present 21 when the undisclosed facts show a reasonable impression of partiality.
discussed Cited as authority (verbatim quote) Pao Tatneft v. Ukraine
D.D.C. · 2020 · quote attribution · 1 verbatim quote · confidence high
the parties can choose their arbitrators intelligently only when facts showing potential partiality are disclosed.
examined Cited as authority (verbatim quote) Noel Madamba Contracting, LLC v. Romero. (4×) also: Cited as authority (rule)
Haw. · 2015 · signal: see also · quote attribution · 1 verbatim quote · confidence high
the parties can choose their arbitrators intelligently only when facts showing potential partiality are disclosed.
discussed Cited as authority (verbatim quote) In re Arbitration of Nordic PCL Construction, Inc. v. LIPHGC, LLC.
Haw. · 2015 · quote attribution · 1 verbatim quote · confidence high
the parties can choose their arbitrators intelligently only when facts showing potential partiality are disclosed.
examined Cited as authority (verbatim quote) Nordahl Development Corp., Inc. v. Salomon Smith Barney (3×) also: Cited as authority (rule), Cited "see, e.g."
D. Or. · 2004 · signal: see also · quote attribution · 1 verbatim quote · confidence high
that a reasonable impression of partiality is present does not mean the arbitration award was the product of impropriety.
examined Cited as authority (quoted) Timothy L. WOODS, Plaintiff-Appellant, v. SATURN DISTRIBUTION CORPORATION, a Delaware Corporation, Defendant-Appellee (4×) also: Cited as authority (rule), Cited "see"
9th Cir. · 1996 · quote attribution · 1 verbatim quote · confidence low
the parties can choose their arbitrators intelligently only when facts showing potential partiality are disclosed.
discussed Cited as authority (rule) Garofalo v. Di Vincenzo
Va. · 2026 · confidence medium
In support of this argument, Garofalo urges us to adopt a standard akin to the “reasonable impression of bias” test used by some federal courts of appeals. 6 See, e.g., Schmitz v. Zilveti, 20 F.3d 1043, 1046 (9th Cir. 1994). 5F 5 Though we decline to adopt ANR Coal and its factor test, unlike both courts below, we recognize that decision’s instructive value in reaching our holding today.
cited Cited as authority (rule) Williams v. Bureau of Prisons
D.N.H. · 2025 · confidence medium
Mass. Apr. 4, 2025) (quoting Schmitz v. Zilveti, 20 F.3d 1043, 1045 (9th Cir. 1994)). personal jurisdiction over the person to whom the writ is directed—i.e., the prisoner’s immediate custodian.
discussed Cited as authority (rule) ShaZor Logistics LLC v. Amazon.com LLC
W.D. Wash. · 2024 · confidence medium
See, e.g., Commonwealth Coatings Corp. v. Cont’l Cas. 17 Co., 393 U.S. 145, 146, 150 (1968) (holding that petitioner was entitled to have an arbitration award set aside on based on evident partiality where a member of the arbitration panel had close 18 business connections to the respondent that were unknown to the petitioner until after an award was made); Schmitz v. Zilveti, 20 F.3d 1043, 1045 (9th Cir. 1994).
cited Cited as authority (rule) Saidwal v. Flagship
N.D. Cal. · 2024 · confidence medium
Schmitz v. Zilveti, 20 F.3d 1043, 1046 (9th Cir. 1994); see also EHM Prods.
discussed Cited as authority (rule) Mills and Woods v. Weiss
Ariz. Ct. App. · 2022 · confidence medium
Co., 393 U.S. 145, 147 (1968) (under the Federal Arbitration Act (“FAA”), party seeking to vacate an arbitration award for evident partiality need not show that the arbitrator “was actually guilty of fraud or bias in deciding th[e] case.”). “[E]vident partiality is present when undisclosed facts show a reasonable impression of partiality.” Schmitz v. Zilveti, 20 F.3d 1043, 1046 (9th Cir. 1994) (construing FAA) (citations and internal quotation marks omitted). ¶12 Parties must, when possible, raise their complaints about the arbitration during the arbitration process itself. “[P]…
discussed Cited as authority (rule) Astronics Electronic Systems Corp v. MAGicALL Inc
W.D. Wash. · 2022 · confidence medium
Whether the Arbitrator Acted with Partiality Toward AES 2 Finally, MAGicALL moves to vacate the Award pursuant to 9 U.S.C. § 10 (a)(2), 3 which provides grounds to vacate an arbitration award where there is “evident partiality 4 or corruption in the arbitrators.” In the Ninth Circuit, the legal standard for “evident 5 partiality” requires “facts showing a ‘reasonable impression of partiality.’” New Regency 6 Prods., Inc. v. Nippon Herald Films, Inc., 501 F.3d 1101, 1106 (9th Cir. 2007) (quoting 7 Schmitz v. Zilveti, 20 F.3d 1043, 1048 (9th Cir. 1994)).
discussed Cited as authority (rule) Williams Law Group PLLC v. American Arbitration Association
D. Ariz. · 2022 · confidence medium
A “‘reasonable impression’ of 8 partiality is not equivalent to, nor does it imply, a finding of actual bias.” Schmitz v. Zilveti, 9 20 F.3d 1043, 1047 (9th Cir. 1994). “[T]he party alleging evident partiality [in actual bias 10 cases] must establish specific facts [that] indicate improper motives.” Woods, 78 F.3d at 11 427 (quoting Sheet Metal Workers Int’l Ass’n Local 420 v. Kinney Air Conditioning Co., 12 756 F.2d 742, 746 (9th Cir. 1985)). 13 Plaintiffs offer the fact that the arbitrator found Plaintiff’s sworn declarations not 14 credible as specific evidence of her actu…
discussed Cited as authority (rule) Bloom Energy Corporation v. Badger
N.D. Cal. · 2021 · confidence medium
Respondents cite four 27 cases as the “governing authorities int his matter.” Dkt. 19 ¶ 13 (11:1-6); Dkt. 29-3 at 17. 1 Cas., 393 U.S. 145 (1968); (2) In re Sussex Court, 776 F.3d 1092, 1099 (9th Cir. 2015); 2 (3) Schmitz v. Zilveti, 20 F.3d 1043, 1046 (9th Cir. 1994); and (4) New Regency Prods., 3 Inc. v. Nippon Herald Films, Inc., 501 F.3d 1101 (9th Cir. 2007). 4 All four of these cases describe only the reasonable impression of bias standard. 5 As a formal matter, then, the court understands that respondents limit their challenge 6 under Title 9 U.S.C. § 10 (a)(2) to its reasonable im…
discussed Cited as authority (rule) UBS Financial Services Inc. v. Ass'n de Empleados del Estado (2×) also: Cited "see"
1st Cir. · 2021 · confidence medium
We disagree. (arbitrator was chief financial officer and compliance officer of an investment firm that did "a substantial amount of business" with the prevailing party during the arbitration); Schmitz, 20 F.3d at 1044 (arbitrator's law firm represented the prevailing party's parent company on at least nineteen occasions over a period of thirty-five years). 8 To the extent AEELA argues that Osimetha's failure to investigate these potential conflicts itself establishes his evident partiality, the triviality of the connections is fatal to the argument.
cited Cited as authority (rule) Sanchez v. Frito-Lay, Inc.
E.D. Cal. · 2021 · confidence medium
Vizcaino v. Microsoft Corp., 290 20 F.3d 1043, 1047 (9th Cir. 2002) (citation omitted).
discussed Cited as authority (rule) Raymond James and Associates v. Terran Orbital Corp.
9th Cir. · 2021 · confidence medium
Under the circumstances, the relationship between RJA and the arbitrator’s former firm does not give rise to a “reasonable impression of partiality.” Schmitz v. Zilveti, 20 F.3d 1043, 1047 (9th Cir. 1994).
discussed Cited as authority (rule) Levi Strauss & Co. v. Aqua Dynamics Systems, Inc. (2×)
N.D. Cal. · 2020 · confidence medium
For 5 example, in Schmitz v. Zilveti, 20 F.3d 1043, 1049 (9th Cir. 1994), evident partiality was found 6 where the arbitrator was a partner at a law firm that had represented the parent company of one of 7 the arbitrating parties in nineteen matters over 35 years.
discussed Cited as authority (rule) Monster Energy Company v. City Beverages, LLC (2×)
9th Cir. · 2019 · confidence medium
Similarly, in Schmitz v. Zilveti, we vacated an arbitration award for evident partiality where the arbitrator’s law firm had represented the parent company of one party in “at least nineteen cases during a period of 35 years.” 20 F.3d 1043, 1044 (9th Cir. 1994).
discussed Cited as authority (rule) American Brokerage Network v. Aig
9th Cir. · 2018 · confidence medium
Lastly, the undisclosed relationships, considered in light of those the arbitrator did disclose, are insufficient to create a “[r]easonable impression of partiality.” Schmitz v. Zilveti, 20 F.3d 1043, 1047 (9th Cir. 1994) (citation omitted).
discussed Cited as authority (rule) 797 Broadway Group, LLC v. BCI Construction, Inc.
N.Y. Sup. Ct. · 2017 · confidence medium
However, the Ninth Circuit continues to rely on an “appearance of partiality” standard (Schmitz v Zilveti, 20 F3d 1043, 1046-1049 [9th Cir 1994]), and a divided New York State Court of Appeals appears to have applied a similar standard in the context of the predecessor to CPLR 7511 (see Matter of Milliken Woolens [Weber Knit Sports wear], 9 NY2d 878, 879 [1961], affg 11 AD2d 166 [1st Dept 1960]). .
examined Cited as authority (rule) Narayan v. Association of Apartment Owners of Kapalua Bay Condominium. (4×) also: Cited "see", Cited "see, e.g."
Haw. · 2017 · confidence medium
Phrased in other ways, an arbitrator must disclose facts that reasonably “create an impression of possible bias,” Commonwealth Coatings, 393 U.S. at 149 , 89 S.Ct. 337 , or that demonstrate a “reasonable impression of partiality.” Schmitz, 20 F.3d at 1046 (citation omitted).
discussed Cited as authority (rule) National Indemnity Co. v. IRB Brasil Resseguros S.A.
S.D.N.Y. · 2016 · confidence medium
Co., 393 U.S. 145, 146 , 89 S.Ct. 337 , 21 L.Ed.2d 301 (1968); Andros, 579 F.2d at 695-96 , Schmitz v. Zilveti, 20 F.3d 1043, 1044 (9th Cir.1994); Schwartzman v. Harlap, 377 Fed.Appx. 108, 110 (2d Cir.2010); Applied Industrial, 492 F.3d at 135 ; ANR Coal Co. v. Cogentrix of N.C., Inc., 173 F.3d 493, 496 (4th Cir.1999); Sanko S.S.
discussed Cited as authority (rule) In re Arbitration of Nordic PCL Construction, Inc. v. LIPHGC, LLC
Haw. · 2015 · confidence medium
With respect to whether there was a duty of disclosure, the ICA stated that “it was incumbent upon [the Arbitrator] to disclose this relationship with Carlsmith” because “[o]nly then could Nordic have evaluated whether Carlsmith’s representation of the QLT would affect Nordic’s decision on whether to select [the Arbitrator] ... or sought further information....” Nordic, mem. op. at 15 (citing Schmitz v. Zilveti, 20 F.3d 1043, 1047 (9th Cir.1994) (“The parties can choose their arbitrators intelligently only when facts showing potential partiality are disclosed.”)).
examined Cited as authority (rule) Municipal Workers Compensation Fund, Inc. v. Morgan Keegan & Co. (5×) also: Cited "see"
Ala. · 2015 · confidence medium
The Court tried to articulate a standard indicating what facts show evident partiality when not disclosed by an arbitrator, The Court described facts that must be disclosed as those that “might create an impression of possible bias,” id. at 149 , 89 S.Ct. at 339 , •those that show the “appearance of bias,” id. at 150 , 89 S.Ct. at 340 , and those that, indicate that arbitrators “might reasonably be thought biased against one litigant and favorable to another,” id.’ “20 F.3d at 1045 (emphasis added).
examined Cited as authority (rule) Mary Ann Sussex v. Usdc-Nvl (4×) also: Cited "see"
9th Cir. · 2015 · confidence medium
Holding that Commonwealth Coatings created a “reasonable impression of partiality” standard, we clarified that its standard differed from the strict standards applicable to judges, because “arbitrators will nearly always, of necessity, have numerous contacts within their field of expertise . . . [and] have many more potential conflicts of interest than judges.” Schmitz v. Zilveti, 20 F.3d 1043, 1046 (9th Cir. 1994); see also Commonwealth Coatings, 393 U.S. at 148 (observing that “arbitrators cannot sever all their ties with the business world”).
examined Cited as authority (rule) Sussex v. United States District Court (4×) also: Cited "see"
9th Cir. · 2015 · confidence medium
Holding that Com *1074 monwealth Coatings created a “reasonable impression of partiality” standard, we clarified that its standard differed from the strict standards applicable to judges, because “arbitrators will nearly always, of necessity, have numerous contacts within their field of expertise ... [and] have many more potential conflicts of interest than judges.” Schmitz v. Zilveti, 20 F.3d 1043, 1046 (9th Cir.1994); see also Commonwealth Coatings, 393 U.S. at 148 , 89 S.Ct. 337 (observing that “arbitrators cannot sever all their ties with the business world”).
cited Cited as authority (rule) Questar Capital Corp. v. Gorter
W.D. Ky. · 2012 · confidence medium
(See Docket No. 23-2, at 3-4, 8, 10 (citing Schmitz v. Zilveti, 20 F.3d 1043, 1048 (9th Cir.1994); Positive Software Solutions, Inc. v. New Century Mortg.
discussed Cited as authority (rule) Lexington Insurance Co. & Chartis v. Southern Energy Homes, Inc. (2×)
Ala. · 2012 · confidence medium
The Court described facts that must be disclosed as those that ‘might create an impression of possible bias,’ id. at 149 , 89 S.Ct. at 339 , those that show the ‘appearance of bias,’ id. at 150 , 89 S.Ct. at 340 , and those that indicate that arbitrators ‘might reasonably be thought biased against one litigant and favorable to another,’ id.” 20 F.3d at 1045 (emphasis added).
discussed Cited as authority (rule) DT-Trak Consulting, Inc. v. Prue
S.D. · 2012 · confidence medium
Generally, courts examining Commonwealth Coatings have “held that ‘evident partiality’ is present when undisclosed facts show ‘a reasonable impression of partiality.’ ” Schmitz v. Zilveti, 20 F.3d 1043, 1046 (9th Cir.1994) (quoting Middlesex Mut.
discussed Cited as authority (rule) Kay v. Kaiser Foundation Health Plan, Inc.
Haw. App. · 2008 · confidence medium
Co., 393 U.S. 145 , 89 S.Ct. 337 , 21 L.Ed.2d 301 (1968); Schmitz v. Zilveti, 20 F.3d 1043, 1046 (9th Cir.1994); Pitta v. Hotel Ass’n of New York City, Inc., 806 F.2d 419, 423-24 (2d Cir.1986); HSMV Corp. v. ADI Ltd., 72 F.Supp.2d 1122, 1130 (C.D.Cal.1999); and Valrose Maui Inc. v. Maclyn Monis, Inc., 105 F.Supp.2d 1118, 1124 (D.Haw.2000); Sousaris v. Miller, 92 Hawai'i 534, 542 , 993 P.2d 568, 576 (App.1998) (quoting Schmitz, 20 F.3d at 1046 )).
examined Cited as authority (rule) New Regency Productions, Inc. v. Nippon Herald Films, Inc. (5×) also: Cited "see"
9th Cir. · 2007 · confidence medium
Second, the code of the arbitral body, the National Association of Securities Dealers (“NASD”), “require[d] arbitrators to ‘make a reasonable effort to inform themselves of any’ ‘existing or past financial, business, [or] professional .... relationships [that they or their employer, partners, or business associates may have] that are likely to affect impartiality or might reasonably create an appearance of partiality or bias.’ ” Id. at 1049 (alterations in original).
examined Cited as authority (rule) New Regency Product v. Nippon Herald Films (4×) also: Cited "see"
9th Cir. · 2007 · confidence medium
Second, the code of the arbitral body, the National Association of Securities Dealers (“NASD”), “require[d] arbitrators to ‘make a reasonable effort to inform themselves of any’ ‘existing or past financial, business, [or] professional . . . . relationships [that they or their employer, partners, or business associates may have] that are likely to affect impartiality or might reasonably create an appearance of partiality or bias.’ ” Id. at 1049 (alterations in original).
cited Cited as authority (rule) Winfrey v. Simmons Foods, Inc.
8th Cir. · 2007 · confidence medium
See, e.g., University Commons-Urbana, Ltd. v. Universal Constructors, Inc., 304 F.3d 1331, 1334 (11th Cir.2002); Schmitz v. Zilveti, 20 F.3d 1043, 1045 (9th Cir.1994).
cited Cited as authority (rule) Raymond Winfrey v. Simmons Foods
8th Cir. · 2007 · confidence medium
See, e.g., University Commons-Urbana, Ltd. v. Universal Constructors, Inc., 304 F.3d 1331, 1334 (11th Cir. 2002); Schmitz v. Zilveti, 20 F.3d 1043, 1045 (9th Cir. 1994).
discussed Cited as authority (rule) Positive Software v. New Century Mortgage (2×) also: Cited "see"
5th Cir. · 2007 · confidence medium
See, e.g., Commonwealth Coatings, 393 U.S. at 146 , 89 S.Ct. at 338 (business relationship between arbitrator and party was "repeated and significant"; the party to the arbitration was one of the arbitrator's "regular customers"; "the relationship even went so far as to include the rendering of services on the very projects involved in this lawsuit"); Olson v. Merrill Lynch, Pierce, Fenner & Smith, Inc., 51 F.3d 157, 159 (8th Cir.1995) (arbitrator was a high-ranking officer in a company that had a substantial ongoing business relationship with one of the parties); Schmitz, 20 F.3d at 1044 (arb…
discussed Cited as authority (rule) Uhl v. Komatsu Forklift Co., Ltd.
E.D. Mich. · 2006 · confidence medium
The defendants argue as well that in cases of nondisclosure, the appropriate standard for vacatur is proof of a “reasonable impression of partiality.” See Schmitz v. Zilveti, 20 F.3d 1043, 1047 (9th Cir.1994).
discussed Cited as authority (rule) Kinn v. Alaska Sales & Service, Inc.
Alaska · 2006 · confidence medium
See, e.g., Positive Software Solutions, Inc. v. New Century Mortgage Corp., 436 F.3d 495, 502 (5th Cir.2006) (holding that "an arbitrator selected by the parties displays evident partiality by the very failure to disclose facts that might create a reasonable impression of the arbitrator's partiality”); Schmitz v. Zilveti, 20 F.3d 1043, 1047 (9th Cir.1994) (holding that, where the arbitrator fails to disclose a relationship with a party, "[sjhow-ing a reasonable impression of partiality is sufficient” to establish evident partiality) (quotation marks omitted). 29 .
discussed Cited as authority (rule) Griffith v. McGovern
Kan. Ct. App. · 2006 · confidence medium
And in Schmitz v. Zilveti, 20 F.3d 1043, 1049 (9th Cir. 1994), the court vacated an arbitration award because the arbitrator failed to disclose his firm’s previous representation of one of the parties’ parent company, a fact which would create a reasonable impression of partiality.
discussed Cited as authority (rule) Weber v. Merrill Lynch Pierce Fenner & Smith, Inc. (2×) also: Cited "see"
N.D. Tex. · 2006 · confidence medium
Courts require the party challenging the arbitration award to establish that the undisclosed facts create a “reasonable impression of partiality.” See Schmitz, 20 F.3d at 1046 (finding that “ ‘evident partiality" is present when undisclosed facts show ‘a reasonable impression of partiality.’ ” (quoting Middlesex Mut.
discussed Cited as authority (rule) RDC Golf of Florida I, Inc. v. Apostolicas
Fla. Dist. Ct. App. · 2006 · confidence medium
Corp., 436 F.3d 495 (5th Cir.2006); Schmitz v. Zilveti, 20 F.3d 1043, 1045 (9th Cir.1994) (stating that Commonwealth Coatings is not a plurality opinion because Justice White joined in the majority opinion although he wrote "additional remarks"). [3] Several courts have remarked on the muddled state of the law concerning evident partiality, due in part to this decision.
examined Cited as authority (rule) Positive Software Solutions, Inc. v. New Century Mortgage Corp. (6×) also: Cited "see"
5th Cir. · 2006 · confidence medium
See, e.g., Commonwealth Coatings, 393 U.S. at 146 , 89 S.Ct. at 338 (business relationship between arbitrator and party was “repeated and significant”; the party to the arbitration was one of the arbitrator’s “regular customers”; “the relationship even went so far as to include the rendering of services on the very projects involved in this lawsuit”); Olson v. Merrill Lynch, Pierce, Fenner & Smith, Inc., 51 F.3d 157, 159 (8th Cir.1995) (arbitrator was a high-ranking officer in a company that had a substantial ongoing business relationship with one of the parties); Schmitz, 20 F.3…
examined Cited as authority (rule) Positive Software Solutions, Inc. v. New Century Mortgage Corp. (4×)
5th Cir. · 2006 · confidence medium
See, e.g., Olson v. Merrill Lynch, Pierce, Fenner & Smith, Inc., 51 F.3d 157, 160 (8th Cir.1995); Schmitz v. Zilveti, 20 F.3d 1043, 1045 (9th Cir.1994). . 9 U.S.C. § 10 (a)(2). 9 U.S.C. § 10 provides in full: (a)In any of the following cases the United States court in and for the district wherein the award was made may make an order vacating the award upon the application of any party to the arbitration— (1) where the award was procured by corruption, fraud, or undue means; (2) where there was evident partiality or corruption in the arbitrators, or either of them; (3) where the arbitrators…
examined Cited as authority (rule) Positive Software Solutions, Inc. v. New Century Mortgage Corporation (4×)
5th Cir. · 2006 · confidence medium
See, e.g., Olson v. Merrill Lynch, Pierce, Fenner & Smith, Inc., 51 F.3d 157, 160 (8th Cir.1995); Schmitz v. Zilveti, 20 F.3d 1043, 1045 (9th Cir.1994). 19 9 U.S.C. § 10 (a)(2). 9 U.S.C. § 10 provides in full: (a) In any of the following cases the United States court in and for the district wherein the award was made may make an order vacating the award upon the application of any party to the arbitration — (1) where the award was procured by corruption, fraud, or undue means; (2) where there was evident partiality or corruption in the arbitrators, or either of them; (3) where the arbitrat…
cited Cited as authority (rule) Fidelity Federal Bank,FSB v. Durga Ma Corp.
9th Cir. · 2004 · confidence medium
Evident partiality is present when facts that are not disclosed by an arbitrator create a “reasonable impression of partiality.” Schmitz v. Zilveti, 20 F.3d 1043, 1046 (9th Cir.1994).
cited Cited as authority (rule) Fidelity Federal Bank, Fsb, a Federally Chartered Savings Bank v. Durga Ma Corporation, a New Jersey Corporation, Fidelity Federal Bank, Fsb, a Federally Chartered Savings Bank v. Durga Ma Corporation, a New Jersey Corporation
9th Cir. · 2004 · confidence medium
Evident partiality is present when facts that are not disclosed by an arbitrator create a "reasonable impression of partiality." Schmitz v. Zilveti, 20 F.3d 1043, 1046 (9th Cir.1994).
examined Cited as authority (rule) Positive Software Solutions, Inc. v. New Century Mortgage Corp. (4×) also: Cited "see, e.g."
N.D. Tex. · 2004 · confidence medium
We therefore decline to adopt a per se rule that no reasonable impression of partiality can be found absent a showing that the arbitrator knew the facts on which it is based. 20 F.3d at 1048-49 (internal citations omitted).
discussed Cited as authority (rule) International Alliance of Theatrical Stage Employees v. Laughon
Cal. Ct. App. · 2004 · confidence medium
(See, e.g., Schmitz v. Zilveti (9th Cir. 1994) 20 F.3d 1043, 1047 [discussing difference between “actual bias” cases and nondisclosure, or “reasonable impression of partiality,” cases].) *1393 Local 16 seems to acknowledge this, because it attempts to reframe the issue as a question of “impression of bias” when it argues that Kagel’s service in the Hydom matter did not give rise to any “impression of possible bias” and, therefore, his failure to disclose it could not be grounds for vacation of the arbitration award.
Retrieving the full opinion text from the archive…
Jean SCHMITZ; Leonard Schmitz, Petitioners-Appellants,
v.
Carlos J. ZILVETI, III; Nicholas S. Meris; Prudential-Bache Securities Inc., AKA Prudential Securities, Inc., Respondents-Appellees
92-16853.
Court of Appeals for the Ninth Circuit.
Apr 5, 1994.
20 F.3d 1043
94 Cal. Daily Op. Serv. 2390
1994 U.S. App. LEXIS 6374
1994 WL 109733
Cedric Choi, Honolulu, HI, for petitioners-appellants., Terry Ross and Dawn M. Schoek, Keesal, Young & Logan, Long Beach, CA, for respondents-appellees.
Poole, Wiggins, Nelson.
Cited by 147 opinions  |  Published
1 passage pin-cited by 1 case
Pinpoint authority: bottom 73%
Citer courts: Ninth Circuit (1)

OPINION

WIGGINS, Circuit Judge:

FACTS AND PRIOR PROCEEDINGS

Pursuant to a contract, Jean and Leonard Schmitz (“Appellants”) and Zilveti, Meris, and Prudential-Baehe Securities, Inc. (“Pru-Bache”) (collectively “Appellees”) submitted a dispute to arbitration before the National Association of Securities Dealers (“NASD”). Under the submission agreements, the dispute was to be arbitrated in accordance with the NASD’s A Code of Arbitration Procedure (1990) (“NASD Code”). Three arbitrators were chosen: John R. Conrad, Carolyn J. Yamasaki, and Richard G. MacMillan. Conrad, a lawyer, was chosen as chairperson of the arbitration panel.

The NASD Code requires each arbitrator to “disclose to the Director of Arbitration any circumstances which might preclude such arbitrator from rendering an objective and impartial determination.” NASD Code § 23(a). Specifically, an arbitrator must disclose (1) “[a]ny direct or indirect financial or personal interest in the outcome”; (2) “any ... financial, business, professional, family, or social relationships that are likely to affect impartiality or might reasonably create an appearance of partiality or bias”; and (3) any personal relationships with any party, its counsel, or witnesses. Id. These relationships must be disclosed whether maintained, presently or previously, by the arbitrators or “members of their families or their current employers, partners, or business associates.” Id. The NASD Code also requires arbitrators to make an investigation regarding potential conflicts of interest. NASD Code section 23(b) provides: “Persons who are requested to accept appointment as arbitrators should make a reasonable effort to inform themselves of any interests or relationships described in Paragraph (a) above.”

Each arbitrator in this case completed a disclosure form indicating affiliations, if any, with the parties to the arbitration and any other matter he or she believed was required to be disclosed. The parties were given these forms. Neither side objected to any of the three arbitrators. After a hearing, the three arbitrators found unanimously in favor of Appellees. A post-award investigation by Appellants then revealed the following facts: Conrad’s law firm represented the parent company of Pru-Bache, Prudential Insurance Co., in at least nineteen cases during a period of 35 years; the most recent representation ended approximately 21 months before this arbitration was submitted. Conrad had reviewed, prior to the hearing, documents stating that Prudential Insurance Co. was the parent company of Pru-Bache. Yet Conrad only ran a conflict check for Pru-Bache. He disclosed prior to the hearing none of the many Prudential Insurance Co. cases his law firm had handled. [1]

Appellants challenged the arbitration award in district court. They alleged that the award should be vacated because Conrad was evidently partial under 9 U.S.C. § 10(a)(2). [2] The district court held that a party challenging an arbitration award must prove facts establishing a reasonable impression of evident partiality and that arbitrators are only bound to disclose facts of which they are aware at the time of the hearing. The court then found that because Conrad was unaware of his law firm’s conflict at the time of the hearing, Appellants had failed to show facts meeting their burden of proof. On this basis, the district court found that no evident[*1045] partiality was present. From that decision, Appellants appeal.

DISCUSSION

Appellants question (1) the legal standard employed by the district court and (2) the application of that legal standard to facts. This court reviews both issues de novo. Pullman-Standard v. Swint, 456 U.S. 273, 289 n. 19, 102 S.Ct. 1781, 1790-91 n. 19, 72 L.Ed.2d 66 (1982); Anderson v. United States, 966 F.2d 487, 489 (9th Cir.1992).

I. The Legal Standard

Appellants argue that Commonwealth Coatings Corp. v. Continental Cas. Co., 393 U.S. 145, 89 S.Ct. 337, 21 L.Ed.2d 301 (1968), requires us to reverse the district court. In Commonwealth Coatings, one arbitrator on a panel of three failed to disclose that he had engaged in periodic and significant business relations with one of the parties to the arbitration over the previous five or six years. Id. at 146, 89 S.Ct. at 338. The arbitrator voted with the panel for an award in favor of the party with whom he had done business. The party that lost the arbitration then challenged the award, asserting that the failure of this arbitrator to disclose his significant business relationship resulted in “evident partiality” under 9 U.S.C. § 10, warranting vacatur of the award.

The district court held that “the arbitrator ... was entirely fair and impartial,” id. at 151 n. *, 89 S.Ct. at 340 n. *, and refused to vacate the award. Without disturbing the finding that the arbitrator was not biased, id. at 147-50 & 151 n. *, 89 S.Ct. at 338-40 & 340 n. *, the Supreme Court reversed and vacated the award. The Court held that an arbitrator’s nondisclosure of facts showing a potential conflict of interest creates evident partiality warranting vacatur even when no actual bias is present. The Court tried to articulate a standard indicating what facts show evident partiality when not disclosed by an arbitrator. The Court described facts that must be disclosed as those that “might create an impression of possible bias,” id. at 149, 89 S.Ct. at 339, those that show the “appearance of bias,” id. at 150, 89 S.Ct. at 340, and those that indicate that arbitrators “might reasonably be thought biased against one litigant and favorable to another,” id. In support of its analysis, the Court cited Turney v. Ohio, 273 U.S. 510, 47 S.Ct. 437, 71 L.Ed. 749 (1927), in which a mayor acting as a judge was held to be evidently biased. 393 U.S. at 148, 89 S.Ct. at 339.

The parties in the instant ease dispute what legal standard Commonwealth Coatings establishes. Their disagreement is in part fueled by misunderstanding of Justice White’s concurrence in Commonwealth Coatings. Justice White wrote a concurring opinion in Commonwealth Coatings, which Justice Marshall joined. Because three other justices dissented, the vote of either Justice White or Justice Marshall was necessary to the formation of a majority voting for reversal. Justice White’s concurrence has therefore been given particular weight. See Middlesex Mut. Ins. Co. v. Levine, 675 F.2d 1197, 1200 (11th Cir.1982). Commonwealth Coatings is not a plurality opinion, however. Justice White said he joined in the “majority opinion” but wrote to make “additional remarks.” 393 U.S. at 150 & 151 n. *, 89 S.Ct. at 340 n. *. Among these additional remarks, Justice White said that arbitrators are not held to the partiality standard applicable to judges and that “trivial” or “remote” relationships need not be disclosed. 393 U.S. at 150-51, 89 S.Ct. at 340 (White, J., concurring).

The parties also dispute the meaning of our case law discussing Commonwealth Coatings. We have discussed Commonwealth Coatings twice while formulating a substantive standard to apply in adjudicating whether an arbitrator is biased, first in Sheet Metal Wkrs. Int’l Ass’n, Local 420 v. Kinney Air Cond. Co., 756 F.2d 742, 746 (9th Cir.1985), and later in Toyota of Berkeley v. Automobile Salesmen’s Union, Local 1095, 834 F.2d 751, 755-56 (9th Cir.1987), cert. denied, 486 U.S. 1043, 108 S.Ct. 2036, 100 L.Ed.2d 620, amended, 856 F.2d 1572 (9th Cir.1988). Both Kinney Air and Toyota of Berkeley involved allegations of actual bias rather than evident partiality created by a failure to disclose facts.

[*1046] Appellants urge us to employ in this ease the “appearance of bias” language from the Commonwealth Coatings majority opinion. Appellants note that the Kinney Air court, when stating that Commonwealth Coatings was a nondisclosure case, cited only to the Commonwealth Coatings majority opinion. See 756 F.2d at 746 (citing only to 393 U.S. at 147-50, 89 S.Ct. at 338-40). According to Appellants, this citation shows that the Ninth Circuit thinks the language in the majority opinion resolved the nondisclosure issue in Commonwealth Coatings. Because that language included the phrase “appearance of bias,” Appellants argue that in Kinney Air we adopted by reference the “appearance of bias” standard.

In rebutting Appellants’ arguments, Appel-lees also cite to Kinney Air as well as Toyota of Berkeley. Although these two cases involved allegations of actual bias rather than a failure to disclose a conflict, in these cases the court implied that Commonwealth Coatings established a “reasonable impression of partiality” standard. In Toyota of Berkeley and Kinney Air we employed this standard in analyzing whether actual bias was shown. Toyota of Berkeley, 834 F.2d at 756; Kinney Air, 756 F.2d at 745-46; see also Employers Ins. of Wausau v. National Union Fire Ins. Co. of Pittsburgh, 933 F.2d 1481, 1488-90 (9th Cir.1991) (also employing the “reasonable impression of partiality” standard in an actual bias case); Sheet Metal Wkrs., Local 162 v. Jason Mfg., Inc., 900 F.2d 1392, 1398 (9th Cir.1990) (same). Despite that Toyota of Berkeley and Kinney Air were actual bias cases, Appellees claim that our analysis in those cases with regard to Commonwealth Coatings forecloses use of another standard here.

Appellees also claim that Justice White’s concurring opinion rejects the “appearance of bias” language. Appellees imply that the “appearance of bias” language is derived from Tumey v. Ohio, in which the partiality of a judge was at issue. Moreover, the “appearance of bias” language appears roughly equivalent to the standard set forth in 28 U.S.C. § 455, which requires a federal judge to recuse himself when his “impartiality might reasonably be questioned.” Thus, Ap-pellees assert, Justice White’s statement that arbitrators are not to be held to the standard applicable to judges implicitly rejected the “appearance of bias” language. 393 U.S. at 150, 89 S.Ct. at 340. Appellees claim that Justice White’s implied rejection of the “appearance of bias” language means that that language was never adopted by a majority of the court. See Morelite Constr. Corp. v. New York City Dist. Council Carpenters Benef. Funds, 748 F.2d 79, 82-83 (2d Cir.1984) (reasoning that Justice White’s concurrence implicitly rejected the “appearance of bias” language); Levine, 675 F.2d at 1200-01.

Neither party is entirely correct. How to apply Commonwealth Coatings in a nondisclosure case is an issue of first impression in the Ninth Circuit. Other courts facing the same issue have held that “evident partiality” is present when undisclosed facts show “a reasonable impression of partiality.” Levine, 675 F.2d at 1201; see Sanko S.S. Co. v. Cook Indus., Inc., 495 F.2d 1260, 1263-64 (2d Cir.1973). Our examination of Commonwealth Coatings persuades us, as it did in Toyota of Berkeley and Kinney Air, that this formulation is the most succinct expression of the Commonwealth Coatings standard. Cf. Toyota of Berkeley, 834 F.2d at 755-56; Kinney Air, 756 F.2d at 746. Consistent with Commonwealth Coatings, courts examining nondisclosure cases have not required proof of actual bias in showing “evident partiality.” See Levine, 675 F.2d at 1200-02; Sanko S.S. Co., 495 F.2d at 1263-64.

We do not rest our decision on any conflict Justice White’s concurrence may have with the Commonwealth Coatings majority opinion, however. Despite Justice White’s rejection in this context of the partiality standard applicable to judges, he does not expressly reject the “appearance of bias” language. Though the concurrence may show an apparent contradiction, the conflict dissipates when one recalls that the context in which arbitrators and judges operate and the functions they perform differ. Expert arbitrators will nearly always, of necessity, have numerous contacts within their field of expertise. 393 U.S. at 150, 89 S.Ct. at 340 (White, J., concurring). Thus, arbitrators have many more potential conflicts of interest than judges. In[*1047] arbitration, moreover, only disclosure and not recusal is required. Given these differences, it is clear that the actual standard for arbitrators does differ from that for judges, even though language used to describe both standards may be similar. Justice White’s rejection, in this context, of the standard applicable to judges does not therefore require rejection of language such as “appearance of bias,” which might be used in other contexts to describe that standard. Given Justice White’s express adherence to the majority opinion in Commonwealth Coatings, it is clear that the majority opinion, including its “appearance of bias” language, received at least five votes. Even so, the majority did not articulate a succinct standard. “Reasonable impression of partiality,” a formulation adopted by other courts and preferred in Toyota of Berkeley and Kinney Air, is the best expression of the Commonwealth Coatings court’s holding.

Though Toyota of Berkeley and Kinney ' Air provide some support for the proposition that Commonwealth Coatings establishes “reasonable impression of partiality” as a legal standard, both the facts and factual analyses of those eases are inapposite to the instant nondisclosure case. Both involve allegations of actual bias rather than evident partiality from failure to disclose. Toyota of Berkeley, 834 F.2d at 756-57; Kinney Air, 756 F.2d at 746. Moreover, both opinions distinguish their facts from those of nondisclosure cases, including Commonwealth Coatings. Toyota of Berkeley, 834 F.2d at 756; Kinney Air, 756 F.2d at 746.

Notwithstanding the factual dissimilarity of Toyota of Berkeley and Kinney Air with nondisclosure eases, both Toyota of Berkeley and Kinney Air employ the “reasonable impression of partiality” standard taken from Commonwealth Coatings, a nondisclosure case. Toyota of Berkeley, 834 F.2d at 756-57; Kinney Air, 756 F.2d at 746; see also Employers Ins., 933 F.2d at 1481; Jason Mfg., 900 F.2d at 1392. That these actual bias cases 'apply the Commonwealth Coatings standard to allegations of actual bias is confusing. In an actual bias case, a court must find actual bias. Finding a “reasonable impression” of partiality is not equivalent to, nor does it imply, a finding of actual bias. Otherwise, the Commonwealth Coatings court could not have held that a reasonable impression of partiality was present when no actual bias was shown.

The policies of 9 U.S.C. § 10 also support the notion that the standard for nondisclosure cases should differ from that used in actual bias cases. In a nondisclosure case, the integrity of the process by which arbitrators are chosen is at issue. Showing a “reasonable impression of partiality” is sufficient in a nondisclosure case because the policy of section 10(a)(2) instructs that the parties should choose their arbitrators intelligently. Commonwealth Coatings, 393 U.S. at 151, 89 S.Ct. at 340 (White, J., concurring). The parties can choose their arbitrators intelligently only when facts showing potential partiality are disclosed. Whether the arbitrators’ decision itself is faulty is not necessarily relevant. But in an actual bias determination, the integrity of the arbitrators’ decision is directly at issue. That a reasonable impression of partiality is present does not mean the arbitration award was the product of impropriety.

Perhaps the notion that a reasonable impression of bias does not add up to actual bias prompted the Kinney Air court to state: “The appearance of impropriety, standing alone, is insufficient.” 756 F.2d at 746; see also Employers Ins., 933 F.2d at 1489; Toyota of Berkeley, 834 F.2d at 755. Yet this proposition in conjunction with Kinney Air’s (and later cases’) use of the Commonwealth Coatings standard means that an impression of bias is sufficient while an appearance is not. Certainly the Commonwealth Coatings majority did not initiate the use of such a hairline distinction, if such a distinction is even possible. The Commonwealth Coatings court reversed precisely because the arbitrator’s business relationship with one of the parties reasonably created an “appearance of bias.” 393 U.S. at 150, 89 S.Ct. at 350. At the least, Kinney Air’s use of “appearance” and “impression” compels the conclusion that “reasonable impression” means something different in an actual bias case than it means in nondisclosure eases under Commonwealth Coatings.

[*1048] Given these differences, we think it entirely appropriate that the Toyota of Berkeley and Kinney Air courts distinguished nondisclosure cases as inapposite, even though Toyota of Berkeley and Kinney Air use a standard derived from Commonwealth Coatings. Toyota of Berkeley, 834 F.2d at 756; Kinney Air, 756 F.2d at 746. For these reasons, we refer to other case law to determine whether the instant case presents facts showing a “reasonable impression of partiality.”

II. Conrad’s Firm’s Representation of Prudential

Appellants claim that Conrad should have disclosed his law firm’s former legal representation of Prudential Insurance Co., the owner of Appellee Pru-Bache. Appellants argue also that if Conrad did not know that Prudential Insurance Co. was a client of his firm, he should have investigated.

The district court rejected both contentions, holding that Conrad was not aware of the conflict and had no duty to investigate. Some courts have considered an arbitrator’s lack of knowledge as a factor in determining whether evident partiality was present. See, e.g., Levine, 675 F.2d at 1201-02; Overseas Private Inv. Corp. v. Anaconda Co., 418 F.Supp. 107, 109-12 (D.D.C.1976). The district court in this case made this factor decisive. The district court’s conclusion appears to be premised on the idea that no person could reasonably conclude that an arbitrator could act partially based on facts of which he was unaware. Anaconda, 418 F.Supp. at 112. This premise is Appellees’ only argument on appeal regarding the evident partiality of Conrad.

Appellants have a better argument. Though lack of knowledge may prohibit actual bias, it does not . always prohibit a reasonable impression.of partiality. As Appellants argue, an arbitrator may have a duty to investigate independent of its Commonwealth Coatings duty to disclose. A violation of this independent duty to investigate may result in a failure to disclose that creates a reasonable impression of partiality under Commonwealth Coatings. For instance, the parties can expect a lawyer/arbitrator to investigate and disclose conflicts he has with actual parties to the arbitration. Close v. Motorists Mut. Ins. Co., 21 Ohio App.3d 228, 486 N.E.2d 1275 (1985) (holding that the failure to do so created a reasonable impression of partiality under Commonwealth Coatings). The NASD Code required Conrad, a lawyer, to make such an investigation regarding the actual parties to this arbitration. In the typical lawyer/arbitrator’s case, lack of knowledge of a conflict may preclude a finding of actual bias. However, a reasonable impression of partiality can form when an actual conflict of interest exists and the lawyer has constructive knowledge of it. 486 N.E.2d at 1278-79. That the lawyer forgot to run a conflict check or had forgotten that he had previously represented the party is not an excuse. Se e In re Siegal, 153 N.Y.S.2d 673 (Sup.Ct.1956). Also, an arbitrator may not know facts of which he may have been suspicious or of which he was on notice which, if true, would create a reasonable impression of partiality if not investigated and disclosed.

Requiring arbitrators to make investigations in certain circumstances gives arbitrators an incentive to be forthright with the parties, honestly disclosing what arbitrators might otherwise have an incentive to hide. Commonwealth Coatings establishes that the parties rather than the arbitrators or the courts should be the judges of the partiality of arbitrators:

In many cases the arbitrator might believe the business relationship to be so insubstantial that to make a point of revealing it would suggest he is indeed easily swayed, and perhaps a partisan of that party. But if the law requires the disclosure, no such imputation, can arise. And it is far better that the relationship be disclosed at the outset, when the parties are free to reject the arbitrator or accept him with knowledge of the relationship and continuing faith in his objectivity, than to have the relationship come to light after the arbitration, when a suspicious or disgruntled party can seize on it as a pretext for invalidating the award. The judiciary should minimize its role in arbitration as judge of the arbitrator’s impartiality. That role is best consigned to the parties, who are the ar[*1049] chitects of their own arbitration process, and are far better informed of the prevailing ethical standards and reputations within their business.

393 U.S. at 151, 89 S.Ct. at 340 (White, J., concurring) (footnote omitted). If the parties are to be judges of the arbitrators’ partiality, duties to investigate and disclose conflicts must be enforced, even if later a court finds that no actual bias was present. See Close, 486 N.E.2d at 1278-79. We therefore decline to adopt a per se rule that no reasonable impression of partiality can be found absent a showing that the arbitrator knew the facts on which it is based.

In this case, Conrad had a duty to investigate the conflict at issue. Section 23(a) & (b) of the NASD Code requires arbitrators to “make a reasonable effort to inform themselves of any” “existing or past financial, business, [or] professional ... relationships [that they or their employer, partners, or business associates may have] that are likely to affect impartiality or might reasonably create an appearance of partiality or bias.” Several courts have held, as we now hold, that representation of a parent corporation is likely to affect impartiality or may create an appearance of partiality in the lawyer’s representation of or dealings with a subsidiary. E.g., Schlossberg v. State Bar Grievance Bd., 388 Mich. 389, 200 N.W.2d 219 (1972) (holding that a lawyer who represents subsidiaries may not sit on a board considering claims against the parent because such was an apparent conflict of interest); see, e.g., Insurance Co. of North America v. Superior Court, 108 Cal.App.3d 758, 166 Cal.Rptr. 880 (1980) (holding that a vice president of a parent was not an outsider so as to destroy the attorney-client privilege of the subsidiary by attendance at the subsidiary’s directors meeting); McCourt Co. v. FPC Properties, Inc., 386 Mass. 145, 434 N.E.2d 1234 (1982) (implying that for purposes of conflict with third parties, no difference exists between parent and subsidiary); Johns-Manville Sales Corp. v. State Univ. Constr. Fund, 79 A.D.2d 782, 434 N.Y.S.2d 830 (1980) (agreeing that a “possible conflict” existed when a lawyer represented the subsidiary as a plaintiff and the lawyer’s partner represented the parent as a defendant in other, unrelated cases); cf. In re Siegal, 153 N.Y.S.2d at 673. [3] But cf. Beck Suppliers, Inc. v. Dean Witter Reynolds, Inc., 53 Ohio App.3d 98, 558 N.E.2d 1187, 1192-93 (1988); California State Bar Standing Committee on Professional Responsibility and Conduct, Formal Opinion Number 1989-113, 1989 WL 253261, Db METH-EO.

Conrad therefore had a duty under the NASD Code to make a reasonable effort to inform himself of his firm’s representation of Pru-Baehe’s parent. Conrad did nothing to fulfill that duty. Thus, though he lacked actual knowledge, he had constructive knowledge of his firm’s previous representation of Prudential Insurance Co. Given Conrad’s constructive knowledge and the presence of the conflict, Conrad’s failure to inform the parties to the arbitration resulted in a reasonable impression of partiality under Commonwealth Coatings. See Close, 486 N.E.2d at 1278-79.

Conrad’s evident partiality warrants vacatur of the arbitration award in this case. A finding of evident partiality in one arbitrator generally requires vacatur of the arbitration award. As stated in Wheeler v. St. Joseph Hospital, 63 Cal.App.3d 345, 133 Cal.Rptr. 775 (1976): “The arbitrators are not isolated from each other; they hear and decide the case as a panel after joint discussion, debate and deliberation. Each panel member has an opportunity to persuade the others.” 133 Cal.Rptr. at 793. Thus, notwithstanding a majority of an arbitration panel is required to enter any arbitration award, when one arbitrator is evidently partial, the panel’s award must generally be suspect. This conclusion holds particularly when the other panel members vote with the evidently partial arbitrator, as will be the case in most awards that are later challenged.

CONCLUSION

For these reasons, we REVERSE the judgment of the district court and VACATE[*1050] the arbitration award. Given our disposition, we decline to examine whether Conrad or the panel exceeded arbitral powers or whether Rogers v. Schering Corp., 165 F.Supp. 295 (D.N.J.1958), aff'd, 271 F.2d 266 (3d Cir.1959), provides a separate ground for reversal.

1

. Appellants also discovered various facts concerning a relationship between Yamasaki and MacMillan which existed prior to the arbitration. In view of our disposition, however, we express no opinion on whether these facts or the failure to disclose them created evident partiality or caused Yamasaki and MacMillan to exceed their authority.

2

. Section 10(a)(2) of title 9 U.S.C. provides in relevant part, "In any of the. following cases the ... district court ... may make an order vacating [an arbitration] award upon application of any party to the arbitration— ... [w]here there was evident partiality ... in the arbitrators_"

3

. Conrad admitted that had he known of his firm's previous representation of Prudential Insurance Co., he would have disclosed it.