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Posts Tagged ‘Cia de Navegacion Omsil S.A. v. Hugo Nev Corp.’

Replacement Arbitrator | Does Section 5 Authorize Replacement of Deceased Arbitrator? | Businessperson’s Federal Arbitration Act FAQ Guide | Nuts and Bolts of Pre-Award Federal Arbitration Act Practice

May 5th, 2020 Application to Appoint Arbitrator, Arbitration and Mediation FAQs, Arbitration Law, Arbitration Practice and Procedure, Arbitrator Vacancy, Death of Arbitrator, FAA Chapter 1, Federal Arbitration Act Enforcement Litigation Procedure, Federal Arbitration Act Section 5, Marine Products Rule, Nuts & Bolts, Nuts & Bolts: Arbitration, Party-Appointed Arbitrators, Pre-Award Federal Arbitration Act Litigation, Section 5, Small Business B-2-B Arbitration, United States Court of Appeals for the Eighth Circuit, United States Court of Appeals for the Second Circuit, United States Court of Appeals for the Seventh Circuit 2 Comments »
Section 5 Death of Arbitrator

The last instalment of this post discussed how arbitrator selection and arbitrator appointment works in practice. This segment addresses the FAQ “Does Section 5 of the Federal Arbitration Act Authorize a Court to Appoint a Replacement Arbitrator if an Arbitrator on a Three-Person Panel Dies Prior to the Panel Making an Award?”  

Does Section 5 of the Federal Arbitration Act Authorize a Court to Appoint a Replacement Arbitrator if an Arbitrator on a Three-Person Panel Dies Prior to the Panel Making an Award?

Under Second Circuit authority courts are not permitted to appoint a replacement arbitrator on a three-person panel if an arbitrator dies prior to the panel making a final award. The arbitration must start anew before a new panel.

If an arbitrator dies prior to the panel making a partial final award, then the original award stands, but the parties are required to constitute a new panel to arbitrate the issues that the partial final award did not resolve.

It is unlikely that Courts in the Seventh and Eighth Circuit will adopt this rule, and whether any others will adopt remains to be seen.   

Section 5 and Death of an Arbitrator

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The Second Circuit Says an Arbitration Must Commence Anew When An Arbitrator Dies — But Not When One Resigns

July 10th, 2010 Arbitration Practice and Procedure, Arbitrator Vacancy Comments Off on The Second Circuit Says an Arbitration Must Commence Anew When An Arbitrator Dies — But Not When One Resigns

I.   Introduction

The United States Court of Appeals for the Second Circuit has held that, “absent special circumstances,” a new panel must be convened when a party-appointed arbitrator dies before the panel renders a final award.  See Marine Products Export Corp. v. M.T. Globe Galaxy, 977 F.2d 66, ___ (1992).   But in Insurance Co. of North Am. v. Public Serv. Mut. Ins. Co., ___ F.3d. ___, slip op. (2d Cir. June 23, 2010) the Court held that when a vacancy is caused by an arbitrator’s resignation, a new panel need not be convened and the trial court may either appoint an arbitrator pursuant to 9 U.S.C. § 5, or direct one of the parties to do so.  Continue Reading »