WestGate Resorts, Ltd. v. Adel

This appeal was rooted in a dispute over an arbitration award. Each party had selected an arbitrator, and a third neutral arbitrator was selected by the two party-appointed arbitrators. Appellee argued that the award should be vacated because one of the party-appointed arbitrators did not disclose that he was first cousins with one of the shareholders in the opposing counsel's law firm. The district court granted Appellee's motion to vacate arbitration award. The Supreme Court reversed, holding (1) under section 129 of the Utah Uniform Arbitration Act (UUAA), there is no appeal of right from a district court order denying confirmation of an arbitration award, vacating the award, and directing a rehearing; (2) party-appointed arbitrators are held to the disclosure standards of the UUAA and not the standards that apply to neutral arbitrators; and (3) the UUAA does not support vacatur in this case, as (i) under subsection 113(4) of the UUAA, the failure to disclose a relationship can support vacatur only if it also meets one of the provisions outlined in subsection 124(1)(b) of the UUAA; and (ii) none of those provisions was shown in this case. View "WestGate Resorts, Ltd. v. Adel" on Justia Law