Jakks Pacific, Inc. v. Superior Court

In a contractual arbitration, a neutral arbitrator must disclose “all matters that could cause a person aware of the facts to reasonably entertain a doubt that the proposed neutral arbitrator would be able to be impartial.” (Code Civ. Proc., § 1281.9, subd. (a).) In this writ proceeding arising out of a petition to compel the appointment of a neutral arbitrator, the issue is whether the required disclosure must be made (1) at the time the trial court proposes five individuals for the parties’ consideration, or (2) when the arbitrator is notified in writing that he has been selected by the parties or appointed by the court. As did the trial court, we conclude that disclosure is not required until the arbitrator is actually selected by the parties or appointed by the court and notified as required by section 1281.9, subdivision (b).

FACTS

Jakks Pacific, Inc., and THQ Inc., are members of a limited liability company that manufactures and sells video games under the terms of an agreement obligating THQ to pay Jakks a percentage of net sales to be renegotiated from time to time. Jakks and THQ, finding themselves unable to agree on the calculation for the current three-year…