This section is from the book "The Law Of Contracts", by William Herbert Page. Also available from Amazon: Commercial Contracts: A Practical Guide to Deals, Contracts, Agreements and Promises.
Unless the parties have waived objection to an arbitrator on the ground of bias, prejudice, and the like, each party has a right to insist that the arbitrators, including the one appointed by the adversary party, shall be impartial and unbiased.1 The fact that A acquiesces in B's appointment of B's agent as an arbitrator does not prevent B from objecting to A's appointment, as an arbitrator, of one who is biased in A's favor.2
If specific individuals are selected as arbitrators by mutual consent, and their qualifications are known to the parties to the submission, the law imposes no actual or further qualifications.3 Even if the parties agree upon one who is unfair and biased,4 or on an agent of one of the parties,5 or even, it has been said, if the parties agree upon one of the parties to the controversy as arbitrators.6 the award when made can not be attacked on the ground of such disqualification.
On the other hand, the parties may have agreed by contract that the arbitrator shall possess certain specific qualifications, and unless they possess such qualifications or unless such provision is waived by the parties, the award may be attacked for lack of such qualifications.7 If the lack of qualifications on the part of the arbitrators is not known to one of the parties to the submission,8 as in cases in which one of the arbitrators was biased and prejudiced, and incapable of rendering a fair award,9 the award when rendered may be attacked upon the ground of such disqualification unless the party who attacks the award had waived such disqualification. On learning of the disqualification, the parties must act with reasonable promptness, and if with knowledge of the disqualification, the party to the submission elects to proceed with the arbitration, he can not subsequently attack an award thus rendered on the ground of such original disqualification.10
3 Greenville County v. Spartanburg County, 62 S. Car. 105, 40 S. E. 147.
4 Bray v. Staples, 149 N. Car. 89, 19 L. R. A. (N.S.) 696, 62 S. E. 780.
1 Western Assurance Co. v. Hall, 143 Ala. 168, 38 So. 853.
2 Western Assurance Co. v. Hall. 143 Ala. 168, 38 So. 853.
3Mathew v. Ollerton, Comb. 218 Rathven v. Elgin, L. R. 2 H. L. Scot. 535; Western Assurance Co. v. Hall, 143 Ala. 168, 38 So. 853; Robb v.
Brachman, 38 O. S. 423; Walworth County Bank v. Farmers' Loan & Trust Co., 22 Wis. 231. 4 Robb v. Brachman, 38 O. R. 423.
5 Western Assurance Co. v. Hall, 143 Ala. 168, 38 So. 853.
6 Mathew v. Ollerton, Comb. 218
7 Junpheim. Hopkins & Co. v. Foukel-mann , 2 K. B. 948.
8 Kimberley v. Dick, L. R. 13 Eq. 1; Pearson v Barringer, 109 N. Car. 398, 13 S. E. 942.