Ceriale
Ceriale v. Amco Insurance
Opinion
Lead Opinion
Gilbert, J.
Arbitration No. 1 is a binding arbitration. While it is pending, one of the attorneys involved in arbitration No. 1 becomes an arbitrator in arbitration No. 2, a judicial arbitration. Must the arbitrator in arbitration No. 1 disclose that she represents a party in arbitration No. 2? Yes.
AMCO Insurance Company (AMCO) appeals from the order of the trial court denying its motion to correct or vacate the arbitrator’s award of $278,168.52 for injuries sustained by respondent, Billie Allayne Ceriale (Ceriale), in an automobile accident with an uninsured motorist. Because a reasonable person aware of the facts might entertain a doubt that the arbitrator would be impartial, we reverse.
Facts
Ceriale was involved in an automobile accident with an uninsured driver. The firm of Carrington & Nye represented him.
The firm petitioned the trial court to compel appointment of an arbitrator for binding arbitration. Richard Carrington appeared at the hearing on the motion to compel on behalf of Ceriale. AMCO neither appeared at the hearing nor opposed the petition on the motion. The trial court appointed Victoria Lindenauer arbitrator at Carrington’s suggestion.
On March 7, 1995,…
Dissenting Opinion
Yegan, J.
I respectfully dissent. The price of perfect justice is too high. (See Fleming, The Price of Perfect Justice (1974.) The majority reverse because the record reveals facts which, in the eyes of a hypothetical person, might create an impression of possible bias. (Betz v. Pankow (1995) 31 Cal.App.4th 1503, 1507-1508 [ 38 Cal.Rptr.2d 107 ].) The use of the words “might,” “impression,” “possible,” and “hypothetical person” make me uneasy. While the appearance of justice is an important ideal for which we should strive, we must not become slaves to the ideal at the expense of justice.
Here the motion to vacate was fueled by the size of the award, $278,168.52. There was no showing that AMCO, a sophisticated insurance carrier, would have objected to the arbitrator had it known of the simultaneous arbitrations. This is especially true because the other arbitration was not binding.
I agree that the arbitrator should have disclosed the simultaneous arbitrations. AMCO, however, was in no position to complain about the perception of possible bias after the arbitrator found for the insured. It refused to arbitrate and only did so after the insured petitioned to compel arbitration. The…
Opinion
Arbitration No. 1 is a binding arbitration. While it is pending, one of the attorneys involved in arbitration No. 1 becomes an arbitrator in arbitration No. 2, a judicial arbitration. Must the arbitrator in arbitration No. 1 disclose that she represents a party in arbitration No. 2? Yes.
AMCO Insurance Company (AMCO) appeals from the order of the trial court denying its motion to correct or vacate the arbitrator's award of $278,168.52 for injuries sustained by respondent, Billie Allayne Ceriale (Ceriale), in an automobile accident with an uninsured motorist. Because a reasonable person aware of the facts might entertain a doubt that the arbitrator would be impartial, we reverse.
Ceriale was involved in an automobile accident with an uninsured driver. The firm of Carrington & Nye represented him.
The firm petitioned the trial court to compel appointment of an arbitrator for binding arbitration. Richard Carrington appeared at the hearing on the motion to compel on behalf of Ceriale. AMCO neither appeared at the hearing nor opposed the petition on the motion. The trial court appointed Victoria Lindenauer arbitrator at Carrington's suggestion.