Bill > A01219

This bill amends New York's civil practice law and rules to strengthen disclosure requirements and impartiality standards for arbitrators. The bill defines arbitration as an alternative dispute resolution method where parties agree to be bound by a neutral third-party arbitrator, and establishes that such an arbitrator must not have an undisclosed, direct, material interest in the case outcome or a substantial existing relationship with any party. The legislation requires arbitrators to disclose, before and during their appointment, any facts that a reasonable person would consider likely to affect their impartiality, including financial interests in the outcome or past relationships with parties, counsel, or witnesses. If an arbitrator fails to disclose such information, a court may vacate the arbitration award, and an arbitrator who does not disclose a known, direct, material interest is presumed to act with evident partiality. Additionally, the bill stipulates that parties cannot waive the requirement of a neutral third-party arbitrator prior to receiving an arbitration demand, and if a party does not object to potential conflicts before the arbitration hearing begins, they may be considered to have waived their right to later challenge the arbitrator's impartiality.

Justice

https://www.nysenate.gov/legislation/bills/2025/A1219