Postel Industries, Inc. v. Travelers Casualty and Surety Company of America, 2014 WL 3594306 (USDC, Middle District of Florida, July 18, 2014)

District Court confirms arbitration award and sanctions opposing counsel.  Postel Industries, Inc., a subcontractor to Brasfield & Gorrie, LLC, opposed B&G’s motion to confirm an arbitration award under the “evident partiality” exception found at 9 U.S.C. § 10(a)(2).  Postel alleged an arbitrator (1) knew two of B&G’s attorneys from prior social gatherings and mediated cases with them; (2) knew but did not disclose that his former secretary was employed by the firm representing B&G; and (3) knew but did not disclose that B&G’s general counsel met the arbitrator’s former law partner at a social gathering in Washington, D.C., during the arbitration.  Judge Dalton set out the rule that “there must be a substantial relationship between the arbitrator and a party in order to establish ‘evident partiality’ under the statute.”  “The evident partiality exception is to be strictly construed,” and the “alleged partiality must be direct, definite and capable of demonstration rather than remote, uncertain, and speculative.”  The judge found Postel’s allegations to be “far too attenuated,” and sanctioned the opposing attorneys for having “no reasonable factual basis” to oppose confirmation.

From The Florida Bar: Construction Law Committee

Trenton H. Cotney

Florida Bar Certified Construction Lawyer

Trent Cotney, P.A.

1211 N Franklin St

Tampa, FL 33602

www.trentcotney.com