Fidelity Federal Bank,FSB v. Durga Ma Corp.

In No. 02-56548, Fidelity Federal Bank, FSB (“Fidelity”) appeals the district court’s order granting Durga Ma Corporation’s (“Durga Ma”) motion under the Federal Arbitration Act (“FAA”), 9 U.S.C. § 10 . The order confirms an arbitration award against Fidelity in favor of Durga Ma arising out of a breach of contract claim. In No. 02-56381, Fidelity appeals the district court’s order denying Fidelity’s motion to vacate the award. Fidelity contends that the award should be vacated under 9 U.S.C. § 10 due to the evident partiality of an arbitrator appointed by Durga Ma. The arbitrator agreed to “act neutrally” but failed to disclose certain family and business relationships with Durga Ma’s attorneys. Nos. 02-56548 and 02-56381 are consolidated for this appeal.

I

We have jurisdiction pursuant to 28 U.S.C. § 1291 and 9 U.S.C. § 16 (a) and we affirm. We hold that Fidelity waived its right to seek vacatur of the arbitration award based on the evident partiality of the arbitrator initially appointed by Durga Ma. Fidelity had constructive notice of the arbitrator’s potential connections to the Durga Ma attorneys but did not object to the arbitrator’s appointment or his failure to make…