The Ethics Standards for Neutral Arbitrators in Contractual Arbitration have been amended, effective July 1, 2014. For more detailed information, please see Item A1 on the Judicial Council’s October 25, 2013, agenda, at http://www.courts.ca.gov/23770.htm. Standard 2.

Definitions 1 2 As used in these standards: 3 4 (

a) Arbitrator and neutral arbitrator 5 6 (1) * * * 7 8

(2) Where the context includes events or acts occurring before an appointment is 9 final, “arbitrator” and “neutral arbitrator” include a person who has been 10 served with notice of a proposed nomination or appointment. For purposes of 11 these standards, “proposed nomination” does not include nomination of 12 persons by a court under Code of Civil Procedure

section 1281.6 to be 13 considered for possible selection as an arbitrator by the parties or 14 appointment as an arbitrator by the court. 15 16 (b)–(n) * * * 17 18 (o) “Member of the arbitrator’s extended family” means the parents, grandparents, 19 great-grandparents, children, grandchildren, great-grandchildren, siblings, uncles, 20 aunts, nephews, and nieces of the arbitrator or the arbitrator’s spouse or domestic 21 partner or the spouse or domestic partner of such person. 22 23 (p)–(s) * * * 24 25 Standard 2 amended effective July 1, 2014. 26 27 Standard 3. Application and effective date 28 29 (a) * * * 30 31 (

b) These standards do not apply to: 32 33 (1) * * * 34 35

(2) Any arbitrator serving in: 36 37 (A)–(C) * * * 38 39 (

D) An automobile warranty dispute resolution process certified under 40 California Code of Regulations title 16, division 33.1 or an informal 41

dispute settlement procedure under Code of Federal Regulations title 1 16,

chapter 1,

part 703; 2 3 (E)–(F) * * * 4 5 (

G) An arbitration of a complaint filed against a contractor with the 6 Contractors State License Board under Business and Professions Code 7 sections 7085 through 7085.7; or 8 9 (

H) An arbitration conducted under or arising out of public or private sector 10 labor-relations laws, regulations, charter provisions, ordinances, 11 statutes, or agreements.; or 12 13 (

I) An arbitration proceeding governed by rules adopted by a securities 14 self-regulatory organization and approved by the United States 15 Securities and Exchange Commission under federal law. 16 17 (

c) The following persons are not subject to the standards or to specific amendments to 18 the standards in certain arbitrations: 19 20

(1) Persons who are serving in arbitrations in which they were appointed to serve 21 as arbitrators before July 1, 2002, are not subject to these standards in those 22 arbitrations. 23 24

(2) Persons who are serving in arbitrations in which they were appointed to serve 25 as arbitrators before January 1, 2003, are not subject to standard 8 in those 26 arbitrations. 27 28

(3) Persons who are serving in arbitrations in which they were appointed to serve 29 as arbitrators before July 1, 2014, are not subject to the amendments to 30 standards 2, 7, 8, 12, 16, and 17 that took effect July 1, 2014 in those 31 arbitrations. 32 33 Standard 3 amended effective July 1, 2014. 34 35 Comment to Standard 3 36 With the exception of standard 8 and the amendments to standards 2, 7, 8, 12, 16, and 17 that 37 took effect July 1, 2014, these standards apply to all neutral arbitrators appointed on or after July 38 1, 2002, who meet the criteria of subdivision (a).

Arbitration provider organizations, although not 39 themselves subject to these standards, should be aware of them when performing administrative 40 functions that involve arbitrators who are subject to these standards. A provider organization’s 41 policies and actions should facilitate, not impede, compliance with the standards by arbitrators 42 who are affiliated with the provider organization. 43

1 Subdivision (b)(2)(

I) is intended to implement the decisions of the California Supreme Court in 2 Jevne v. Superior Court ((2005) 35 Cal.4th 935) and of the United States Court of Appeals for the 3 Ninth Circuit in Credit Suisse First Boston Corp. v. Grunwald ((9th Cir. 2005) 400 F.3d 1119). 4 5 Standard 7. Disclosure 6 7 (a) * * * 8 9 (

b) General provisions 10 11 For purposes of this standard: 12 13 (1) * * * 14 15

(2) Offers of employment or professional relationship 16 17 (

A) Except as provided in (B), if an arbitrator has disclosed to the parties in 18 an arbitration that he or she will entertain offers of employment or of 19 professional relationships from a party or lawyer for a party while the 20 arbitration is pending as required by subdivision (

b) of standard 12, the 21 arbitrator is not also required under this standard to disclose to the 22 parties in that arbitration any such offer from a party or lawyer for a 23 party that he or she subsequently receives or accepts while that 24 arbitration is pending. 25 26 (

B) In a consumer arbitration, if an arbitrator has disclosed to the parties 27 that he or she will entertain offers of employment or of professional 28 relationships from a party or lawyer for a party while the arbitration is 29 pending as required by subdivision (

b) of standard 12 and has informed 30 the parties in the pending arbitration about any such offer and the 31 acceptance of any such offer as required by subdivision (

d) of standard 32 12, the arbitrator is not also required under this standard to disclose that 33 offer or the acceptance of that offer to the parties in that arbitration. 34 35 (3) * * * 36 37 (

c) Time and manner of disclosure 38 39

(1) Initial disclosure 40 41 Within ten 10 calendar days of service of notice of the proposed nomination 42 or appointment, a proposed arbitrator must disclose to all parties in writing all 43

matters listed in subdivisions (

d) and (

e) of this standard of which the 1 arbitrator is then aware. 2 3

(2) Supplemental disclosure 4 5 If an arbitrator subsequently becomes aware of a matter that must be 6 disclosed under either subdivision (

d) or (

e) of this standard, the arbitrator 7 must disclose that matter to the parties in writing within 10 calendar days 8 after the arbitrator becomes aware of the matter. 9 10 (

d) Required disclosures 11 12 A person who is nominated or appointed as an arbitrator A proposed arbitrator or 13 arbitrator must disclose all matters that could cause a person aware of the facts to 14 reasonably entertain a doubt that the proposed arbitrator would be able to be 15 impartial, including, but not limited to, all of the following: 16 17

(1) Family relationships with party 18 19 The arbitrator or a member of the arbitrator’s immediate or extended family 20 is: 21 22 (

A) A party,; 23 24 (

B) a party’sThe spouse or domestic partner, of a party; or 25 26 (

C) An officer, director, or trustee of a party. 27 28

(2) Family relationships with lawyer in the arbitration 29 30 (

A) Current relationships 31 32 The arbitrator, or the spouse, former spouse, domestic partner, child, 33 sibling, or parent of the arbitrator or the arbitrator’s spouse or domestic 34 partner is: 35 36 (A)(i) * * * 37 38 (B)(ii) * * * 39 40 (C)(iii) * * * 41 42

(

B) Past relationships 1 2 The arbitrator or the arbitrator’s spouse or domestic partner was 3 associated in the private practice of law with a lawyer in the arbitration 4 within the preceding two years. 5 6 (3) * * * 7 8

(4) Service as arbitrator for a party or lawyer for party 9 10 (

A) The arbitrator is serving or, within the preceding five years, has served: 11 12 (i)–(ii) * * * 13 14 (iii) As a neutral arbitrator in another prior or pending noncollective 15 bargaining case in which he or she was selected by a person 16 serving as a party-appointed arbitrator in the current arbitration. 17 18 (B)–(C) * * * 19 20

(5) Compensated service as other dispute resolution neutral 21 22 The arbitrator is serving or has served as a dispute resolution neutral other 23 than an arbitrator in another pending or prior noncollective bargaining case 24 involving a party or lawyer for a party and the arbitrator received or expects 25 to receive any form of compensation for serving in this capacity. 26 27 (

A) Time frame 28 29 For purposes of this paragraph (5), “prior case” means any case in 30 which the arbitrator concluded his or her service as a dispute resolution 31 neutral within two years before the date of the arbitrator’s proposed 32 nomination or appointment, but does not include any case in which the 33 arbitrator concluded his or her service before January 1, 2002. 34 35 (B)–(C) * * * 36 37 (6)–(7) * * * 38 39

(8) Employee, expert witness, or consultant relationships 40 41 The arbitrator or a member of the arbitrator’s immediate family is or, within 42

the preceding two years, was an employee of or an expert witness or a 1 consultant for a party or for a lawyer in the arbitration. 2 3 (8)

(9) Other professional relationships 4 5 Any other professional relationship not already disclosed under paragraphs 6 (2)–(7)(8) that the arbitrator or a member of the arbitrator’s immediate family 7 has or has had with a party or lawyer for a party.,including the following: 8 9 (

A) The arbitrator was associated in the private practice of law with a 10 lawyer in the arbitration within the last two years. 11 12 (

B) The arbitrator or a member of the arbitrator’s immediate family is or, 13 within the preceding two years, was an employee of or an expert 14 witness or a consultant for a party; and 15 16 (

C) The arbitrator or a member of the arbitrator’s immediate family is or, 17 within the preceding two years, was an employee of or an expert 18 witness or a consultant for a lawyer in the arbitration. 19 20 (9)(10) * * * 21 22 (10)(11) * * * 23 24 (11)(12) * * * 25 26 (12)(13) * * * 27 28 (13)

(14) Membership in organizations practicing discrimination 29 30 The arbitrator’s membership in is a member of any organization that practices 31 invidious discrimination on the basis of race, sex, religion, national origin, or 32 sexual orientation. Membership in a religious organization, an official 33 military organization of the United States, or a nonprofit youth organization 34 need not be disclosed unless it would interfere with the arbitrator’s proper 35 conduct of the proceeding or would cause a person aware of the fact to 36 reasonably entertain a doubt concerning the arbitrator’s ability to act 37 impartially. 38 39 (14)

(15) Any other matter that: 40 41 (A)–(C) * * * 42 43

(

e) Inability to conduct or timely complete proceedings Other required 1 disclosures 2 3 In addition to the matters that must be disclosed under subdivision (d), an a 4 proposed arbitrator or arbitrator must also disclose: 5 6

(1) Professional discipline 7 8 (

A) If the arbitrator has been disbarred or had his or her license to practice a 9 profession or occupation revoked by a professional or occupational 10 disciplinary agency or licensing board, whether in California or 11 elsewhere. The disclosure must specify the date of the revocation, what 12 professional or occupational disciplinary agency or licensing board 13 revoked the license, and the reasons given by that professional or 14 occupational disciplinary agency or licensing board for the revocation. 15 16 (

B) If the arbitrator has resigned his or her membership in the State Bar or 17 another professional or occupational licensing agency or board, 18 whether in California or elsewhere, while public or private disciplinary 19 charges were pending. The disclosure must specify the date of the 20 resignation, what professional or occupational disciplinary agency or 21 licensing board had charges pending against the arbitrator at the time of 22 the resignation, and what those charges were. 23 24 (

C) If within the preceding 10 years public discipline other than that 25 covered under (

A) has been imposed on the arbitrator by a professional 26 or occupational disciplinary agency or licensing board, whether in 27 California or elsewhere. “Public discipline” under this provision means 28 any disciplinary action imposed on the arbitrator that the professional 29 or occupational disciplinary agency or licensing board identifies in its 30 publicly available records or in response to a request for information 31 about the arbitrator from a member of the public.

The disclosure must 32 specify the date the discipline was imposed, what professional or 33 occupational disciplinary agency or licensing board imposed the 34 discipline, and the reasons given by that professional or occupational 35 disciplinary agency or licensing board for the discipline. 36 37

(2) Inability to conduct or timely complete proceedings 38 39 (1)(

A) If the arbitrator is not able to properly perceive the evidence or 40 properly conduct the proceedings because of a permanent or temporary 41 physical impairment; and 42 43

(2)(

B) Any constraints on his or her availability known to the arbitrator that 1 will interfere with his or her ability to commence or complete the 2 arbitration in a timely manner. 3 4 (f) * * * 5 6 Standard 7 amended effective July 1, 2014. 7 8 Comment to Standard 7 9 10 This standard requires proposed arbitrators to disclose to all parties, in writing within 10 days of 11 service of notice of their proposed nomination or appointment, all matters they are aware of at 12 that time that could cause a person aware of the facts to reasonably entertain a doubt that the 13 proposed arbitrator would be able to be impartial as well as those matters listed under subdivision 14 (e). and to disclose This standard also requires that if arbitrators subsequently become aware of 15 any additional such matters, they must make supplemental disclosures of these matters within 10 16 days of becoming aware of them.

This latter requirement is intended to address both matters 17 existing at the time of nomination or appointment of which the arbitrator subsequently becomes 18 aware and new matters that arise based on developments during the arbitration, such as the hiring 19 of new counsel by a party. 20 21 Timely disclosure to the parties is the primary means of ensuring the impartiality of an arbitrator. 22 It provides the parties with the necessary information to make an informed selection of an 23 arbitrator by disqualifying or ratifying the proposed arbitrator following disclosure.

See also 24 standard 12, concerning disclosure and disqualification requirements relating to concurrent and 25 subsequent employment or professional relationships between an arbitrator and a party or 26 attorney in the arbitration. A party may disqualify an arbitrator for failure to comply with 27 statutory disclosure obligations (see Code Civ. Proc., § 1281.91(a)). Failure to disclose, within 28 the time required for disclosure, a ground for disqualification of which the arbitrator was then 29 aware is a ground for vacatur of the arbitrator’s award (see Code Civ.

Proc., § 1286.2(a)(6)(A)). 30 31 The arbitrator’s overarching duty under subdivision (

d) of this standard, which mirrors the duty 32 set forth in Code of Civil Procedure

section 1281.9, is to inform parties about matters that could 33 cause a person aware of the facts to reasonably entertain a doubt that the proposed arbitrator 34 would be able to be impartial. While the remaining subparagraphs of subdivision (

d) require the 35 disclosure of specific interests, relationships, or affiliations, these are only examples of common 36 matters that could cause a person aware of the facts to reasonably entertain a doubt that the 37 arbitrator would be able to be impartial. The absence of the particular fact that none of the 38 interests, relationships, or affiliations specifically listed in the subparagraphs of (

d) are present in 39 a particular case does not necessarily mean that there is no matter that could reasonably raise a 40 question about the arbitrator’s ability to be impartial and that therefore must be disclosed. 41 Similarly, the fact that a particular interest, relationship, or affiliation present in a case is not 42 specifically enumerated in one of the examples given in these subparagraphs does not mean that it 43

must not be disclosed. An arbitrator must make determinations concerning disclosure on a case-1 by-case basis, applying the general criteria for disclosure under paragraph subdivision (d): is the 2 matter something that could cause a person aware of the facts to reasonably entertain a doubt that 3 the arbitrator would be able to be impartial? 4 5 Code of Civil Procedure

section 1281.85 specifically requires that the ethics standards adopted by 6 the Judicial Council address the disclosure of interests, relationships, or affiliations that may 7 constitute conflicts of interest, including prior service as an arbitrator or other dispute resolution 8 neutral entity.

Section 1281.85 further provides that the standards “shall be consistent with the 9 standards established for arbitrators in the judicial arbitration program and may expand but may 10 not limit the disclosure and disqualification requirements established by this

chapter [chapter 2 of 11 title 9 of

part III, Code of Civil Procedure, sections 1281–1281.95].” 12 13 Code of Civil Procedure

section 1281.9 already establishes detailed requirements concerning 14 disclosures by arbitrators, including a specific requirement that arbitrators disclose the existence 15 of any ground specified in Code of Civil Procedure

section 170.1 for disqualification of a judge. 16 This standard does not eliminate or otherwise limit those requirements; in large part, it simply 17 consolidates and integrates those existing statutory disclosure requirements by topic area.

This 18 standard does, however, expand upon or clarify the existing statutory disclosure requirements in 19 the following ways: 20 21 • Requiring arbitrators to disclose make supplemental disclosures to the parties regarding 22 any matter about which they become aware after the time for making an initial disclosure 23 has expired, within 10 calendar days after the arbitrator becomes aware of the matter 24 (subdivision (f)(c)). 25 • Expanding required disclosures about the relationships or affiliations of an arbitrator’s 26 family members to include those of an arbitrator’s domestic partner (subdivisions (d)(1) 27 and (2); see also

definitions of immediate and extended family in standard 2). 28 • Requiring arbitrators, in addition to making statutorily required disclosures regarding 29 prior service as an arbitrator for a party or attorney for a party, to disclose both prior 30 services both as a neutral arbitrator selected by a party arbitrator in the current arbitration 31 and prior compensated service as any other type of dispute resolution neutral for a party 32 or attorney in the arbitration (e.g., temporary judge, mediator, or referee) (subdivisions 33 (d)(4)(C)(A)(iii) and (5)). 34 • If a disclosure includes information about five or more cases, requiring arbitrators to 35 provide a

summary of that information (subdivisions (d)(4)(

C) and (5)(C). 36 • Requiring the arbitrator to disclose if he or she or a member of his or her immediate 37 family is or, within the preceding two years, was an employee, expert witness, or 38 consultant for a party or a lawyer in the arbitration (subdivisions (d)(8) (

A) and (B)). 39 • Requiring the arbitrator to disclose if he or she or a member of his or her immediate 40 family has an interest that could be substantially affected by the outcome of the 41 arbitration (subdivision (d)(11)(12)). 42 43

If a disclosure includes information about five or more cases, requiring arbitrators to provide a 1

summary of that information (subdivisions (d)(4) and (5). 2 • Requiring arbitrators to disclose membership in organizations that practice invidious 3 discrimination on the basis of race, sex, religion, national origin, or sexual orientation 4 (subdivision (d)(13)(14)). 5 • Requiring the arbitrator to disclose if he or she was disbarred or had his or her license to 6 practice a profession or occupation revoked by a professional or occupational disciplinary 7 agency or licensing board, resigned membership in the State Bar or another licensing 8 agency or board while disciplinary charges were pending, or had any other public 9 discipline imposed on him or her by a professional or occupational disciplinary agency or 10 licensing board within the preceding 10 years (subdivision (e)(1)).

The standard identifies 11 the information that must be included in such a disclosure; however, arbitrators may want 12 to provide additional information to assist parties in determining whether to disqualify an 13 arbitrator based on such a disclosure. 14 • Requiring the arbitrator to disclose any constraints on his or her availability known to the 15 arbitrator that will interfere with his or her ability to commence or complete the 16 arbitration in a timely manner (subdivision (d)(e)(2)). 17 • Clarifying that the duty to make disclosures is a continuing obligation, requiring 18 disclosure of matters that were not known at the time of nomination or appointment but 19 that become known afterward (subdivision (e)(f)). 20 21 It is good practice for an arbitrator to ask each participant to make an effort to disclose any 22 matters that may affect the arbitrator’s ability to be impartial. 23 24 25 Standard 8.

Additional disclosures in consumer arbitrations administered by a 26 provider organization 27 28 (

a) General provisions 29 30

(1) Reliance on information provided by provider organization 31 32 Except as to the information in (c)(1), an arbitrator may rely on information 33 supplied by the administering provider organization in making the disclosures 34 required by this standard only if the provider organization represents that the 35 information the arbitrator is relying on is current through the end of the 36 immediately preceding calendar quarter.

If the information that must be 37 disclosed is available on the Internet, the arbitrator may comply with the 38 obligation to disclose this information by providing in the disclosure 39 statement required under standard 7(c)(1) the Internet address of the specific 40 web page at which the information is located and notifying the party that the 41 arbitrator will supply hard copies of this information upon request. 42 43

(2) * * * 1 2 (

b) Additional disclosures required 3 4 In addition to the disclosures required under standard 7, in a consumer arbitration 5 as defined in standard 2 in which a dispute resolution provider organization is 6 coordinating, administering, or providing the arbitration services, a person 7 proposed arbitrator who is nominated or appointed as an arbitrator on or after 8 January 1, 2003 must disclose the following within the time and in the same 9 manner as the disclosures required under standard 7(c)(1): 10 11

(1) Relationships between the provider organization and party or lawyer in 12 arbitration 13 14 Any significant past, present, or currently expected financial or professional 15 relationship or affiliation between the administering dispute resolution 16 provider organization and a party or lawyer in the arbitration. Information 17 that must be disclosed under this standard includes: 18 19 (

A) The provider organization has a financial interest in a party. 20 21 (A)(

B) A party, a lawyer in the arbitration, or a law firm with which a 22 lawyer in the arbitration is currently associated is a member of or has a 23 financial interest in the provider organization. 24 25 (B)(

C) Within the preceding two years the provider organization has 26 received a gift, bequest, or favor from a party, a lawyer in the 27 arbitration, or a law firm with which a lawyer in the arbitration is 28 currently associated. 29 30 (C)(

D) The provider organization has entered into, or the arbitrator currently 31 expects that the provider organization will enter into, an agreement or 32 relationship with any party or lawyer in the arbitration or a law firm 33 with which a lawyer in the arbitration is currently associated under 34 which the provider organization will administer, coordinate, or provide 35 dispute resolution services in other noncollective bargaining matters or 36 will provide other consulting services for that party, lawyer, or law 37 firm. 38 39 (D)(

E) The provider organization is coordinating, administering, or 40 providing dispute resolution services or has coordinated, administered, 41 or provided such services in another pending or prior noncollective 42 bargaining case in which a party or lawyer in the arbitration was a party 43

or a lawyer. For purposes of this paragraph, “prior case” means a case 1 in which the dispute resolution neutral affiliated with the provider 2 organization concluded his or her service within the two years before 3 the date of the arbitrator’s proposed nomination or appointment, but 4 does not include any case in which the dispute resolution neutral 5 concluded his or her service before July 1, 2002. 6 7

(2) Case information 8 9 If the provider organization is acting or has acted in any of the capacities 10 described in paragraph (1)(D)(E), the arbitrator must disclose: 11 12 (A)–(C) * * * 13 14

(3) Summary of case information 15 16 If the total number of cases disclosed under paragraph (1)(D)(

E) is greater 17 than five, the arbitrator must also provide a

summary of these cases that 18 states: 19 20 (A)–(D) * * * 21 22 (

c) Relationship between provider organization and arbitrator 23 24 If a relationship or affiliation is disclosed under paragraph subdivision (b), the 25 arbitrator must also provide information about the following: 26 27 (1)–(4) * * * 28 29 (d) * * * 30 31 Standard 8 amended effective July 1, 2014. 32 33 Comment to Standard 8 34 35 This standard only applies in consumer arbitrations in which a dispute resolution provider 36 organization is administering the arbitration. Like standard 7, this standard expands upon the 37 existing statutory disclosure requirements. Code of Civil Procedure

section 1281.95 requires 38 arbitrators in certain construction defect arbitrations to make disclosures concerning relationships 39 between their employers or arbitration services and the parties in the arbitration. This standard 40 requires arbitrators in all consumer arbitrations to disclose any financial or professional 41 relationship between the administering provider organization and any party, attorney, or law firm 42 in the arbitration and, if any such relationship exists, then the arbitrator must also disclose his or 43

her relationship with the dispute resolution provider organization. This standard does not requires 1 an arbitrator to disclose if the provider organization has a financial interest in a party or lawyer in 2 the arbitration or if a party or lawyer in the arbitration has a financial interest in the provider 3 organization because even though provider organizations are prohibited under Code of Civil 4 Procedure

section 1281.92 from administering any consumer arbitration where any such 5 relationship exists. 6 7 Subdivision (b). Currently expected relationships or affiliations that must be disclosed include all 8 relationships or affiliations that the arbitrator, at the time the disclosure is made, expects will be 9 formed.

For example, if the arbitrator knows that the administering provider organization has 10 agreed in concept to enter into a business relationship with a party, but they have not yet signed a 11 written agreement formalizing that relationship, this would be a “currently expected” relationship 12 that the arbitrator would be required to disclose. 13 14 Standard 12. Duties and limitations regarding future professional relationships or 15 employment 16 17 (a) * * * 18 19 (

b) Offers for other employment or professional relationships other than as a 20 lawyer, expert witness, or consultant 21 22

(1) In addition to the disclosures required by standards 7 and 8, within ten 23 calendar days of service of notice of the proposed nomination or 24 appointment, a proposed arbitrator must disclose to all parties in writing if, 25 while that arbitration is pending, he or she will entertain offers of 26 employment or new professional relationships in any capacity other than as a 27 lawyer, expert witness, or consultant from a party or a lawyer for a party, 28 including offers to serve as a dispute resolution neutral in another case. 29 30

(2) If the arbitrator discloses that he or she will entertain such offers of 31 employment or new professional relationships while the arbitration is 32 pending: 33 34 (

A) In consumer arbitrations, the disclosure must also state that the 35 arbitrator will inform the parties as required under (

d) if he or she 36 subsequently receives an offer while that arbitration is pending. 37 38 (

B) In all other arbitrations, the disclosure must also state that the arbitrator 39 will not inform the parties if he or she subsequently receives an offer 40 while that arbitration is pending. 41 42

(3) A party may disqualify the arbitrator based on this disclosure by serving a 1 notice of disqualification in the manner and within the time specified in Code 2 of Civil Procedure

section 1281.91(b). 3 4 (

c) Acceptance of offers under (

b) prohibited unless intent disclosed 5 6 If an arbitrator fails to make the disclosure required by subdivision (

b) of this 7 standard, from the time of appointment until the conclusion of the arbitration the 8 arbitrator must not entertain or accept any such offers of employment or new 9 professional relationships, including offers to serve as a dispute resolution neutral. 10 11 (

d) Required notice of offers under (b) 12 13 If, in the disclosure made under subdivision (b), the arbitrator states that he or she 14 will entertain offers of employment or new professional relationships covered by 15 (b), the arbitrator may entertain such offers. However, in consumer arbitrations, 16 from the time of appointment until the conclusion of the arbitration, the arbitrator 17 must inform all parties to the current arbitration of any such offer and whether it 18 was accepted as provided in this subdivision. 19 20

(1) The arbitrator in a consumer arbitration must notify the parties in writing of 21 any such offer within five days of receiving the offer and, if the arbitrator 22 accepts the offer, must notify the parties in writing within five days of that 23 acceptance. The arbitrator’s notice must identify the party or attorney who 24 made the offer and provide a general description of the employment or new 25 professional relationship that was offered including, if the offer is to serve as 26 a dispute resolution neutral, whether the offer is to serve in a single case or 27 multiple cases. 28 29

(2) If the arbitrator fails to inform the parties of an offer or an acceptance as 30 required under (1), that constitutes a failure to comply with the arbitrator’s 31 obligation to make a disclosure required under these ethics standards. 32 33

(3) If an arbitrator has informed the parties in a pending arbitration about an offer 34 as required under (1): 35 36 (

A) Receiving or accepting that offer does not, by itself, constitute 37 corruption in or misconduct by the arbitrator; 38 39 (

B) The arbitrator is not also required to disclose that offer or its acceptance 40 under standard 7; and 41 42

(

C) The arbitrator is not subject to disqualification under standard 10(a)(2), 1 (3), or (5) solely on the basis of that offer or the arbitrator’s acceptance 2 of that offer. 3 4

(4) An arbitrator is not required to inform the parties in a pending arbitration 5 about an offer under this subdivision if: 6 7 (

A) He or she reasonably believes that the pending arbitration is not a 8 consumer arbitration based on reasonable reliance on a consumer 9 party’s representation that the arbitration is not a consumer arbitration; 10 11 (

B) The offer is to serve as an arbitrator in an arbitration conducted under 12 or arising out of public or private sector labor-relations laws, 13 regulations, charter provisions, ordinances, statutes, or agreements; or 14 15 (

C) The offer is for uncompensated service as a dispute resolution neutral. 16 17 (d)(e) * * * 18 19 Standard 12 amended effective July 1, 2014. 20 21 Comment to Standard 12 22 23 Subdivision (d)(1). A party may disqualify an arbitrator for failure to make required disclosures, 24 including disclosures required by these ethics standards (see Code Civ. Proc., § 1281.91(

a) and 25 standard 10(a)). Failure to disclose, within the time required for disclosure, a ground for 26 disqualification of which the arbitrator was then aware is also a ground for vacatur of the 27 arbitrator’s award (see Code Civ. Proc., § 1286.2(a)(6)(A)). 28 29 Subdivision (d)(4)(B). The arbitrations identified under this provision are only those in which, 30 under Code of Civil Procedure

section 1281.85(

b) and standard 3(b)(2)(H), the ethics standards 31 do not apply to the arbitrator. 32 33 Standard 16. Compensation 34 35 (a) * * * 36 37 (

b) Before accepting appointment, an arbitrator, a dispute resolution provider 38 organization, or another person or entity acting on the arbitrator’s behalf must 39 inform all parties in writing of the terms and conditions of the arbitrator’s 40 compensation. This information must include any basis to be used in determining 41 fees; and any special fees for cancellation, research and preparation time, or other 42 purposes; any requirements regarding advance deposit of fees; and any practice 43

concerning situations in which a party fails to timely pay the arbitrator’s fees, 1 including whether the arbitrator will or may stop the arbitration proceedings. 2 3 Standard 16 amended effective July 1, 2014. 4 5 Comment to Standard 16 6 7 This standard is not intended to affect any authority a court may have to make orders with respect 8 to the enforcement of arbitration agreements or arbitrator fees.

It is also not intended to require 9 any arbitrator or arbitration provider organization to establish a particular requirement or practice 10 concerning fees or deposits, but only to inform the parties if such a requirement or practice has 11 been established. 12 13 Standard 17. Marketing 14 15 (

a) An arbitrator must be truthful and accurate in marketing his or her services. An 16 arbitrator may advertise a general willingness to serve as an arbitrator and convey 17 biographical information and commercial terms of employment and but must not 18 make any representation that directly or indirectly implies favoritism or a specific 19 outcome. An arbitrator must ensure that his or her personal marketing activities and 20 any activities carried out on his or her behalf, including any activities of a provider 21 organization with which the arbitrator is affiliated, comply with this requirement. 22 23 (b) * * * 24 25 (

c) An arbitrator must not solicit appointment as an arbitrator in a specific case or 26 specific cases. 27 28 (

d) As used in this standard, “solicit” means to communicate in person, by telephone, 29 or through real-time electronic contact to any prospective participant in the 30 arbitration concerning the availability for professional employment of the arbitrator 31 in which a significant motive is pecuniary gain. The term solicit does not include: 32 (1) responding to a request from all parties in a case to submit a proposal to provide 33 arbitration services in that case; or (2) responding to inquiries concerning the 34 arbitrator’s availability, qualifications, experience, or fee arrangements. 35 36 Standard 17 amended effective July 1, 2014. 37 38 Comment to Standard 17 39 40 Subdivision (

b) and (c). Arbitrators should keep in mind that, in addition to these restrictions on 41 solicitation, several other standards contain related disclosure requirements. For example, under 42 standard 7(d)(4)-(6), arbitrators must disclose information about their past, current, and 43

prospective service as an arbitrator or other dispute resolution for a party or attorney in the 1 arbitration. Under standard 8(b)(1)(

C) and (D), in consumer arbitrations administered by a 2 provider organization, arbitrators must disclose if the provider organization has coordinated, 3 administered, or provided dispute resolution services, is coordinating, administering, or providing 4 such services, or has an agreement to coordinate, administer, or provide such services for a party 5 or attorney in the arbitration.

And under standard 12 arbitrators must disclose if, while an 6 arbitration is pending, they will entertain offers from a party or attorney in the arbitration to serve 7 as a dispute resolution neutral in another case. 8 9 This These provisions is are not intended to prohibit an arbitrator from accepting another 10 arbitration from a party or attorney in the arbitration while the first matter is pending, as long as 11 the arbitrator complies with the provisions of standard 12 and there was no express solicitation of 12 this business by the arbitrator. 13