No. 27581 (Oct. 31, 2008)
Opinion [pdf]
OPINION OF THE COURT BY LEONARD, J.
Plaintiff-Appellant William Kay, Jr. (Kay), father of Jeffrey Kay (Jeffrey), challenges an arbitration award issued on May 28, 2002, which was confirmed by the Circuit Court of the First Circuit (Circuit Court) in its Findings of Fact, Conclusions of Law and Order (Confirmation Order), filed on October 21, 2005. Kay argues that: (1) certain of the Circuit Court's Findings of Fact (FOFs) are inaccurate and/or incomplete; (2) several of the Circuit Court's Conclusions of Law (COLs) are wrong; and (3) the Circuit Court erred in denying his motion to vacate the arbitration award because one of the arbitrators, Laurie Tom, M.D. (Dr. Tom), failed to disclose that she had a prior relationship with the opposing party in arbitration, Kaiser Foundation Health Plan, Inc. (Kaiser), whereby she solicited contributions from Kaiser for a charitable organization with which she was affiliated, including during the pendency of the arbitration.
For the reasons set forth below, we hold that: (1) an arbitrator's failure to disclose her direct, personal involvement in ongoing, fund-raising solicitations to one of the parties, while the arbitration is pending, creates an impression of partiality or possible bias; and (2) the Circuit Court erred in denying Kay's petition to vacate the arbitration award. Therefore, we reverse the Confirmation Order. [footnote omitted]
