The independence and impartiality of arbitrators are fundamental pillars of arbitration, a recognized dispute resolution method known for its neutrality and efficiency. However, conflicts of interest—whether perceived or real—can have an adverse impact on the process. Recently, most, if not all, major arbitral institutions have implemented rules requiring that arbitrators disclose any facts that may affect their impartiality so that both the parties and the arbitral institution can make an upfront determination on a potential conflict.

Notwithstanding these rules, in recent years, there has been an increase in the number of challenges to arbitral awards based upon claims brought by the nonprevailing party that the failure by an arbitrator to make a fulsome disclosure of a relationship or connection had allegedly impacted the arbitrator’s ability to render an impartial award. In order to address these challenges, many arbitral institutions have now expanded and/or clarified their rules concerning disclosure of potential conflicts of interest, and identified processes for how the institution will address purported conflicts of interest.