Commodities in Focus Weekly - Issue 103

Keeping up appearances: Apparent arbitrator bias and the requirements of disclosure examined by the English Commercial Court

The English Commercial Court recently addressed apparent arbitrator bias and disclosure requirements in Aiteo Eastern E & P Company Ltd v Shell Western Supply and Trading Ltd & Ors [2024] EWHC 1993 (Comm). The case involved the appointment of an arbitrator in disputes over financing contracts for Nigerian oilfields. Among other things, the court scrutinized whether the arbitrator's multiple professional engagements with lawyers representing the opposing parties created a perception of bias.

Key points covered are:

1. Arbitrator disclosure of any professional engagements that might raise questions as to their impartiality.
2. The application of the test for apparent bias from Halliburton Co v Chubb Bermuda Insurance Ltd [2020] UKSC 48.
3. The effect of the removal of the arbitrator by the arbitral body and whether this created an issue estoppel.
4. The importance of transparency in arbitration to maintain trust and integrity.

For a detailed analysis, click here to read the full article.