H1 & Anor v W & Ors

H1 & Anor v W & Ors

The arbitrator's statements at the procedural hearing, particularly his remarks that he knew the insured's expert witnesses 'extremely well' and would believe what they said, coupled with his dismissal of the need to hear their evidence and his negative comments about the insurer's witnesses, gave rise to a real possibility of bias. A fair-minded and informed observer would conclude that the arbitrator was not impartial and had allowed extraneous considerations to influence his assessment of the evidence. This justified removal under section 24(1)(a) of the Arbitration Act 1996.

Parties
Claimant/applicant: H1; Claimant/applicant: H2; Defendant/respondent: W; Defendant/respondent: D; Defendant/respondent: F
Jurisdiction
England and Wales
Judgment Date
11 October 2024
Procedural Posture
Arbitration Claim (removal of Arbitrator) / Judgment on Application for Removal of Arbitrator
Outcome
Application granted; arbitrator removed for apparent bias.
Legal Topics
Apparent Bias, Impartiality of Arbitrator, Removal of Arbitrator, Film Production Insurance, Confidentiality in Arbitration
Arbitration Insurance Law Apparent Bias Impartiality of Arbitrator Removal of Arbitrator Film Production Insurance Confidentiality in Arbitration

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Parties

H1

Claimant/applicant

H2

Claimant/applicant

W

Defendant/respondent

D

Defendant/respondent

F

Defendant/respondent

Procedural Posture

Arbitration Claim (removal of Arbitrator) / Judgment on Application for Removal of Arbitrator

Legal Issues

  1. 1 Whether the arbitrator (W) should be removed for apparent bias under section 24(1)(a) of the Arbitration Act 1996
  2. 2 Whether statements and conduct by the arbitrator give rise to justifiable doubts as to impartiality
  3. 3 Whether the arbitrator's prior professional relationships with witnesses amount to apparent bias

Ratio Decidendi

The arbitrator's statements at the procedural hearing, particularly his remarks that he knew the insured's expert witnesses 'extremely well' and would believe what they said, coupled with his dismissal of the need to hear their evidence and his negative comments about the insurer's witnesses, gave rise to a real possibility of bias. A fair-minded and informed observer would conclude that the arbitrator was not impartial and had allowed extraneous considerations to influence his assessment of the evidence. This justified removal under section 24(1)(a) of the Arbitration Act 1996.

Court Disposition

Application granted; arbitrator removed for apparent bias.

Orders

  • W is removed as arbitrator pursuant to section 24(1) of the Arbitration Act 1996.
  • W is entitled to payment of his fees and expenses up to the conclusion of the Second Procedural Hearing on 23 November 2023.