Conflicts of Interest in Arbitration
Overview
Arbitrators are individually entrusted to resolve the dispute as judges of the case. For this, they need to comply with the procedural principles of independence, impartiality and neutrality in legal adjudication.
As long as arbitrators are selected by both parties, the arbitrator's selection process has to be very transparent to ensure that there is no conflict of interest among any of the parties involved. A series of legal rules and soft law regulations applies to an arbitrator's nomination, such as the IBA Guidelines on Conflicts of Interest in International Arbitration.
This issue holds significant implications as it may potentially lead to the annulment of an arbitral award. The Bahrain Court of Cassation has unequivocally established (in the case BCC 467/2019) that continued participation in proceedings amounts to a waiver of the right to challenge an arbitrator, particularly pertinent when a conflict of interest is identified before or during arbitration proceedings.