Commodities in Focus Weekly: Context is King: Court holds that industry context is key when determining arbitrator bias (Africa Sourcing v Rockwinds)

Industry context is important when considering arbitrator bias. In this case,¹ the court dismissed a challenge to a trade association arbitration award brought on the grounds that the chair of the arbitral appeal board had failed to make disclosures relating to contact with the defendant and other members of the trade association in a professional category giving rise to apparent bias. It held that in the context of a relatively small commodities market where traders and the trade association arbitrators were likely to know others in the market, a fair-minded and informed observer would not conclude there was a real possibility of bias.

The judge also considered guidance on when apparent bias will amount to substantial injustice so as to constitute serious irregularity under section 68(2)(a) Arbitration Act 1996 (AA 1996) and the loss of the right to object under s 73 AA 1996. 

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¹ Africa Sourcing Cameroun Ltd and another v Société par Actions Simplifiée (Rockwinds) and another [2023] EWHC 150 (Comm) (27 January 2023)