(a) Before accepting appointment, an individual who is requested to serve as an arbitrator, after making a reasonable inquiry, shall disclose to all parties to the agreement to arbitrate and arbitration proceeding and to any other arbitrators any known facts that a reasonable person would consider likely to affect the impartiality of the arbitrator in the arbitration proceeding, including:
(1) a financial or personal interest in the outcome of the arbitration proceeding; and
(2) an existing or past relationship with any of the parties to the agreement to arbitrate or the arbitration proceeding, their counsel or representatives, a witness or other arbitrators.
(b) An arbitrator has a continuing obligation to disclose to all parties to the agreement to arbitrate and arbitration proceeding and to any other arbitrators any facts that the arbitrator learns after accepting appointment which a reasonable person would consider likely to affect the impartiality of the arbitrator. If an arbitrator discloses a fact required by Subsection (a) or (b) to be disclosed and a party timely objects to the appointment or continued service of the arbitrator based upon the fact disclosed, the objection may be a ground under Section 24(a)(2) [44-7A-24 NMSA 1978] for vacating an award made by the arbitrator.
(c) If the arbitrator did not disclose a fact as required by Subsection (a) or (b), upon timely objection by a party, the court under Section 24(a)(2) may vacate an award.
(d) An arbitrator appointed as a neutral arbitrator who does not disclose a known, direct and material interest in the outcome of the arbitration proceeding or a known, existing and substantial relationship with a party is presumed to act with evident partiality under Section 24(a)(2).
(e) If the parties to an arbitration proceeding agree to the procedures of an arbitration organization or any other procedures for challenges to arbitrators before an award is made, substantial compliance with those procedures is a condition precedent to a motion to vacate an award on that ground under Section 24(a)(2).
History: Laws 2001, ch. 227, § 13.
Compiler's note. — Laws 2002, ch. 227, § 33 repealed the former Uniform Arbitration Act, Sections 44-7-1 to 44-7-22 NMSA 1978, enacted by Laws 1971, ch. 168, §23. The Uniform Arbitration Act compiled as 44-7A-1 to 44-7A-32 NMSA 1978 was enacted effective July 1, 2001.
Potential neutral arbitrators need not sever all their ties with the business world. Ormsbee Dev. Co. v. Grace, 668 F.2d 1140 (10th Cir.), cert. denied, 459 U.S. 838, 103 S. Ct. 84, 74 L. Ed. 2d 79 (1982).
Am. Jur. 2d, A.L.R. and C.J.S. references. — 4 Am. Jur. 2d Alternative Dispute Resolution § 154 et seq.
Disqualification of arbitrator by court or stay of arbitration proceedings prior to award, on ground of interest, bias, prejudice, collusion or fraud of arbitrators, 65 A.L.R.2d 755.
6 C.J.S. Arbitration § 63.
Structure 2021 New Mexico Statutes
Chapter 44 - Miscellaneous Civil Law Matters
Article 7A - Uniform Arbitration
Section 44-7A-1 - Short title; definitions.
Section 44-7A-3 - When the uniform arbitration applies.
Section 44-7A-4 - Effect of agreement to arbitrate; nonwaivable provisions.
Section 44-7A-5 - Disabling civil dispute clause voidable.
Section 44-7A-6 - Application for judicial relief.
Section 44-7A-7 - Validity of agreement to arbitrate.
Section 44-7A-8 - Motion to compel or stay arbitration.
Section 44-7A-9 - Provisional remedies.
Section 44-7A-10 - Initiation of arbitration.
Section 44-7A-11 - Consolidation of separate arbitration proceedings.
Section 44-7A-12 - Appointment of arbitrator; service as a neutral arbitrator.
Section 44-7A-13 - Disclosure by arbitrator.
Section 44-7A-14 - Action by majority.
Section 44-7A-15 - Immunity of arbitrator; competency to testify; attorney's fees and costs.
Section 44-7A-16 - Arbitration process.
Section 44-7A-17 - Representation by lawyer.
Section 44-7A-18 - Witnesses; subpoenas; depositions; discovery.
Section 44-7A-19 - Judicial enforcement of pre-award ruling by arbitrator.
Section 44-7A-21 - Change of award by arbitrator.
Section 44-7A-22 - Remedies; fees and expenses of arbitration proceeding.
Section 44-7A-23 - Confirmation of award.
Section 44-7A-24 - Vacating award.
Section 44-7A-25 - Modification or correction of award.
Section 44-7A-26 - Judgment on award; attorney's fees and litigation expenses.
Section 44-7A-27 - Jurisdiction.
Section 44-7A-30 - Uniformity of application and construction.
Section 44-7A-31 - Relationship to electronic signatures in global and national commerce act.