Figi

Todd Figi appeals the judgment confirming arbitrators’ award on the ground undisclosed business relationships between the neutral arbitrator, the insurance company arbitrator and the respondent insurance company—New Hampshire Insurance Company (New Hampshire)—give the appearance of bias and furnish grounds to vacate the award for fraud and corruption (Code Civ. Proc., § 1286.2, subd. (a)).

Figi sustained a fire loss insured by New Hampshire and the matter was submitted to arbitration. Both Figi and New Hampshire selected as their arbitrators independent insurance adjusters: Gary G. McKay, who normally represents claimants, for Figi; and Dick Walsh, who generally works for insurance companies, for New Hampshire. McKay and Walsh selected the neutral arbitrator, Milton Stern, a certified public accountant regarded by both Walsh and McKay as the only available competent umpire for this dispute. Stern initially resisted appointment because of a longstanding personal friendship with Figi’s arbitrator, McKay, but McKay and Walsh persuaded him to serve. The arbitration hearing took place May 30, 1978, resulting in an award of $11,929. Figi thought it should be about $40,000.…