| 1. Section 23(a)(2) is based on UAA Section 12(a)(2). The |
| reason "evident partiality" is a grounds for vacatur only for |
| a neutral arbitrator is because non-neutral arbitrators, |
| unless otherwise agreed, serve as representatives of the |
| parties appointing them. As such, these non-neutral, party- |
| appointed arbitrators are not expected to be impartial in the |
| same sense as neutral arbitrators. Macneil Treatise § 28.4. |
| However, corruption and misconduct are grounds to vacate an |
| award by both neutral arbitrators and non-neutral arbitrators |
| appointed by the parties. As to misconduct, before courts will |
| vacate an award on this ground, objecting parties must |
| demonstrate that the misconduct actually prejudiced their |
| rights. Creative Homes & Millwork, Inc. v. Hinkle, 426 S.E.2d |
| 480 (N.C. Ct App. 1993). Courts have not required a showing of |
| prejudice when parties challenge an arbitration award on |
| grounds of evident partiality of the neutral arbitrator or |
| corruption in any of the arbitrators. Gaines Constr. Co. v. |
| Carol City Ut., Inc., 164 So. 2d 270 (Fl. Dist. Ct. 1964); |
| Northwest Mech., Inc. v. Public Ut. Comm'n, 283 N.W.2d 522 |
| (Minn. 1979); Egan & Sons Co. v. Mears Park Dev. Co., 414 |
| N.W.2d 785 (Minn. Ct. App. 1987). Corruption is also a ground |
| for vacatur in Section 23(a)(1) that does not require any |
| showing of prejudice. |