International Produce Inc. v. A/S Rosshavet

Arbitration - Whether award should be vacated - Appearance of bias

In LMLN No. 14 (15 May 1980) there was a report on International Produce Inc. v. A/S Rosshavet in which the Trial Court vacated a unanimous arbitration award of $1.2 million in a charterparty dispute because of an “appearance of bias.” The decision caused consternation among maritime arbitrators because of the impossibility of obtaining learned and experienced arbitrators who had no speculative conflicts of interest and had never become involved commercially with the parties in a dispute. It was feared that the case represented an unnecessary standard of non-involvement which might harm the development of maritime arbitration in America.