State Codes and Statutes

State Codes and Statutes

Statutes > North-carolina > Chapter_1 > GS_1-567_42

§1‑567.42.  Grounds for challenge.

(a)        Except as otherwiseprovided in this Article, all persons whose names have been submitted forconsideration for appointment or designation as arbitrators, or who have beenappointed or designated as such, shall make a disclosure to the parties within15 days of such submission, appointment, or designation of any informationwhich might cause their impartiality to be questioned including, but notlimited to, any of the following instances:

(1)        The person has apersonal bias or prejudice concerning a party, or personal knowledge ofdisputed evidentiary facts concerning the proceeding;

(2)        The person served asa lawyer in the matter in controversy, or the person is or has been associatedwith another who has participated in the matter during such association, or hasbeen a material witness concerning it;

(3)        The person served asan arbitrator in another proceeding involving one or more of the parties to theproceeding;

(4)        The person,individually or as a fiduciary, or such person's spouse or minor child residingin such person's household, has a financial interest in the subject matter incontroversy or in a party to the proceeding, or any other interest that couldbe substantially affected by the outcome of the proceeding;

(5)        The person, his orher spouse, or a person within the third degree of relationship to either ofthem, or the spouse of such a person meets any of the following conditions:

a.         The person is or hasbeen a party to the proceeding, or an officer, director, or trustee of a party;

b.         The person is actingor has acted as a lawyer in the proceeding;

c.         The person is knownto have an interest that could be substantially affected by the outcome of theproceeding;

d.         The person is likelyto be a material witness in the proceeding;

(6)        The person has aclose personal or professional relationship with a person who meets any of thefollowing conditions:

a.         The person is or hasbeen a party to the proceeding, or an officer, director, or trustee of a party;

b.         The person is actingor has acted as a lawyer or representative in the proceeding;

c.         The person is orexpects to be nominated as an arbitrator or conciliator in the proceeding;

d.         The person is knownto have an interest that could be substantially affected by the outcome of theproceeding;

e.         The person is likelyto be a material witness in the proceeding.

(b)        The obligation todisclose information set forth in subsection (a) of this section is mandatoryand cannot be waived as to the parties with respect to persons serving eitheras sole arbitrator or as the chief or prevailing arbitrator.  The parties mayotherwise agree to waive such disclosure.

(c)        From the time ofappointment and throughout the arbitral proceedings, an arbitrator shalldisclose to the parties without delay any circumstances referred to insubsection (a) of this section which were not previously disclosed.

(d)        Unless otherwiseagreed by the parties or the rules governing the arbitration, an arbitrator maybe challenged only if circumstances exist that give rise to justifiable doubtsas to his or her independence or impartiality, or as to his or her possessionof the qualifications upon which the parties have agreed.

(e)        A party maychallenge an arbitrator appointed by it, or in whose appointment it hasparticipated only for reasons of which it becomes aware after the appointmenthas been made. (1991, c. 292.)