The applicant sought an order disqualifying and removing the arbitrator in a mediation-arbitration proceeding between a condominium corporation and a hotel corporation regarding disputes over cost-sharing, maintenance, and utilities.
The arbitrator disclosed that a proposed expert witness for the applicant had recently referred an unrelated litigation matter to the arbitrator's law firm, with the arbitrator tasked with carriage of that matter.
The arbitrator initially identified a clear appearance of conflict and proposed three options, including his resignation or waiver by both parties.
However, after the respondent objected to the arbitrator's withdrawal, the arbitrator reversed his position and refused to resign.
The court found that while a single business referral might not justify disqualification, the subsequent events—including the arbitrator's initial determination of a clear appearance of conflict, his reversal of position, and the manner in which he attempted to manage the conflict—gave rise to a reasonable apprehension of bias.
The application was granted and the arbitrator was disqualified.