N.C. Canons of Ethics for Arbitrators Canon II

Rev. 939, 990 –91 (19 97). Since these Canons

would apply to all arbitrators, including

non-lawyers, and Canon I.I states aspirations to

provide continuing education, there is no

inconsistency with the Rules. Canon I.I is

consistent with North Carolina attorneys ’

obligations to take 12 hours of continuing legal

education a year. Other lawyers teach this CLE,

and these lawyers have the same role as Canon

I.I would contemplate for experienced

arbitrators.

The Canon’s language has been tightened.

Canon I generally parallels North Carolina

Code of Judicial Conduct, Canons 1 –3

(Code of Judicial Conduct ), See also National

Academy of Arbitrators et al., Code of

Professional Responsibility for Arbitrators of

Labor-Management Disputes, ¶¶ 1.A–1.C.2, III.A

(May 30, 1996) ( Academy Code); International

Bar Association, Ethics for International

Arbitrators, Arts. 1–2 (1986) (IBA Ethics), 26 Int’l

Legal Mat ’ls 584 (1987), 6A Benedict on

Admiralty, Doc. No. 7-12D (Frank L. Wiswall, Jr.

ed., 7th rev. ed. 1999), SPIDR Standards, General

Responsibilities & Responsibilities to the Parties

§ 1, Background and Qualifications.

An arbitrator shall disclose any interest or relationship likely to affect

impartiality or which might create an appearance of partiality or bias.

A. Persons asked to serve as arbitrators shall, before accepting, disclose:

(1) any direct or indirect financial or personal interest in the outcome

of the arbitration;

(2) any existing or past financial, business, professional, family or

social rela tionships which are likely to affect impartiality or

which might reasonably create an appearance of partiality or

bias. Persons asked to serve as arbitrators shall disclose any such

relationships which they personally have with any party or its

lawyer, or with any individual whom they have been told will be

a witness. They shall also disclose any such relationships

involving their spouses or minor children residing in the

household or their current employers, partners or business

associates; and

(3) any information required by a court in the case of

court-administered arbitrations.

B. Persons asked to accept appointment as arbitrators shall make a

reasonable effort to inform themselves of any interests or relationships described in

Canon II.A.

C. The obligation to disclose interests or relationships described in

Canon II.A is a continuing duty which requires a person accepting appointment as

an arbitrator to disclose, at any stage of the arbitration, any such interests or

relationships which may arise, or which are recalled or discovered.

D. Disclosure shall be made to all parties unless other disclosure

procedures are provided in the rules or practices of an institution or court

administering the arbitration. Where more than one arbitrator has been appointed,

the other arbitrators shall be informed of interests and relationships which have been

disclosed.

E. If an arbitrator is asked by all parties to withdraw, the arbitrator shall

do so, provided however, if a court is administering the arbitration, the arbitrator

shall inform the court of the request and shall comply with court orders. If an

arbitrator is asked to withdraw by less than all of the parties because of alleged

partiality or bias, the arbitrator shall withdraw unless any of these circumstances

exists:

(1) If the parties’ agreement, or arbitration rules to which the parties

have agreed, establish procedures for determining challenges to

arbitrators, those procedures shall be followed;

(2) If the arbitrator, after carefully considering the matter,

determines that the reason for the challenge is not substantial,

and that he or she can nevertheless act and decide the case

impartially and fairly, and that withdrawal would cause unfair

delay or expense to another party or would be contrary to the

interest of justice; or

(3) The court administering the arbitration decides otherwise.

F. The parties may waive disqualification of an arbitrator upon full

disclosure of any basis for disqualification, and upon approval of the court in

court-administered arbitrations.