An Alabama court claimed authority under Section 5 of the Federal Arbitration Act to appoint an umpire in an arbitration upon complaint by the plaintiff that “a lapse in the naming of an arbitrator . . . or umpire” had occurred in the arbitration selection process. 9 U.S.C. § 5. The arbitration provision at issue required each party to nominate one non-impartial arbitrator and required the two chosen arbitrators to select a neutral umpire within thirty days of the second arbitrator’s appointment. The Supreme Court of Alabama reversed the circuit court’s appointment, holding that 1) defendants’ delay in providing a list of potential umpires by six days beyond the prescribed thirty days was so minimal it did not warrant judicial intervention, and 2) defendants did not act in bad faith by proposing two potential umpires plaintiffs contend were biased because there was no showing that the potential umpires would not disclose facts relevant to their ability to be fair if selected and defendants offered to propose an additional umpire when plaintiffs complained of bias. Lexington Insurance Co. v. Southern Energy Homes, Inc., No. 1091617 (Ala. Aug. 17, 2012).
This post written by Abigail Kortz.
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