Speier v. The Advantage Fund, LLCAnnotate this Case
The arbitration award at issue here involved claims by a former investment fund manager and his former employers, namely, the investment funds. All parties were sophisticated and engaged in a business - not consumer - dispute. Both law firms were frequent users of the services of the ADR provider, JAMS. The motion to vacate was based on the sole ground that the arbitrator did not disclose the extent of JAMS’s “business relationship” with O’Melveny & Myers (one of the law firms) and the arbitrator’s ownership interest in JAMS (not more than .1 percent of total revenue in a given year). Appellant contended the arbitrator failed to make required disclosures. The sole basis for the appeal was the argument the arbitrator did not disclose information that could cause a reasonable person aware of the facts to entertain a doubt that the arbitrator would be able to be impartial. The trial court granted a motion to confirm an arbitration award and denied a motion to vacate that award. Based on the facts and circumstances shown by this record, and applying the analytical framework the Court of Appeal held that the arbitrator’s and JAMS’s disclosures were sufficient, and the arbitrator was not required to disclose more information about the extent of JAMS’s business with O’Melveny & Myers, or the arbitrator’s own ownership interest in JAMS. "There is no issue of a repeat party or lawyer being favored over a non-repeat party or lawyer; the parties in this business dispute are sophisticated; and the law firms were both frequent users of JAMS to the same extent."