Supreme Court of New Jersey

Barcon Associates, Inc., Plaintiff-Appellant v. Tri-County Asphalt Corporation, Defendant-Respondent

May 28, 198186 N.J. 179

Summary

The Supreme Court of New Jersey affirmed the Appellate Division's judgment vacating the arbitration award because the party‑designated arbitrator had an undisclosed, substantial business relationship with the party that appointed him, which the Court held constituted evident partiality under N.J.S.A. 2A:24-8(b). The Court also established a prospective rule requiring all arbitrators to disclose any such relationships before arbitration begins. Justice Clifford dissented, arguing that the majority improperly expands the statutory standard and interferes with the parties' contractual expectations.