Opinion ID: 2169455
Heading Depth: 1
Heading Rank: 3

Heading: The Grabbert Standard

Text: There is a `strong public policy in favor of the finality of arbitration awards.' Pierce v. Rhode Island Hospital, 875 A.2d 424, 426 (R.I.2005). However, the judicial vacating of an arbitration award is appropriate in certain situations, specified by statute. Section 10-3-12. In relevant part, the statute requires that a court vacate an award [w]here there was evident partiality or corruption on the part of the arbitrators, or either of them. Section 10-3-12(2). In her decision, the motion justice tracked in part our opinion in Grabbert, in which we said that evident partiality will be found `where a reasonable person would have to conclude that an arbitrator was partial to one party to the arbitration.' Grabbert, 590 A.2d at 96. As in the instant case, Grabbert stemmed from an automobile accident and the resulting arbitration between one of the drivers (Grabbert) and his insurance company (Aetna). Id. at 89. Aetna, among other claims, maintained that Grabbert's party-appointed arbitrator's contingency fee in the arbitration award constituted evident partiality such that the award should be vacated pursuant to § 10-3-12(2). Grabbert, 590 A.2d at 91. We reversed the decision of the trial justice, who had vacated the award. We reinstated the award, determining that despite our belief that the party-appointed arbitrator's contingent fee gave him a direct financial interest in the award that was absolutely improper, we nevertheless believe that Aetna has failed to demonstrate the required causal nexus between the party-appointed arbitrator's improper conduct and the award that was ultimately decided upon. Id. at 92. After Grabbert, a plaintiff arguing for the vacating of an arbitration award due to evident partiality must demonstrate not only an improper interest, but also a causal nexus between the [party-appointed arbitrator's conduct] and the arbitration award. See V.S. Haseotes & Sons, L.P. v. Haseotes, 819 A.2d 1281, 1285 (R.I.2003) (applying the Grabbert test of impropriety coupled with causal nexus). We undertake this two-step analysis below. 1