Removal of arbitrator: liability of arbitrator for costs

An arbitrator can be removed under section 24 of the Arbitration Act 1996 if, amongst other things, “circumstances exist that give rise to justifiable doubts as to his impartiality” and if the arbitrator has failed “properly to conduct the proceedings”. The cases show that dismissal is a rare event. The authorities were considered by Henshaw J in C Ltd v D and Another [2020] EWHC 1283 (Comm); [2020] 2 Lloyd’s Rep 119, where the key issue was whether the arbitrator was liable to pay the costs of removal proceedings in circumstances where the arbitrator resigned for other reasons before judgment: the question thus became whether, but for the resignation, it was tolerably clear that the application would have been successful.

The facts