Arbitrator Removal – Proposals to Remove Sitting Arbitrators

   

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Proposals for Removal of Arbitrators Contemplated

ARBITRATOR REMOVAL: What do you do when an Arbitrator on your Panel has a clear conflict and all routes to remove him/her have proved fruitless? Under the current SRO Rules (e.g., NYSE Rule 610), the Director of Arbitration “may remove an arbitrator based on information disclosed…” to the Director, but only “[P]rior to the commencement of the first hearing session.” Remember the Decker case (EM 00-10) in which the Panel Chair was challenged by the Claimant, after disclosing a possible conflict, after nine hearing days? The Arbitrator remained on the Panel and the full Panel rejected a motion for his recusal. That is how the problem must be approached today. During the Arbitration Workshop at the SIA Conference, NASD Regulation EVP Linda Fienberg disclosed that a new rule proposal is in the works that will give the Director of Arbitration (and Ms. Fienberg) the non-delegable authority to remove an arbitrator under certain circumstances. When we mentioned this in EM 00-11, we understood it to be a NASD-only rule proposal, but SICA has reportedly agreed to add a similar provision to the Uniform Code of Arbitration. More on this as we get the details of the proposal – }


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