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Westgate Resorts, Ltd. v. Adel
289 P.3d 420
Utah
2012
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Background

  • Westgate Resorts sought to vacate an arbitration award after learning arbitrator Richard Burbidge was a first cousin of George W. Burbidge II, a Christensen & Jensen, P.C. shareholder representing CPG; neither disclosed the relationship.
  • CPG counterclaims were pending in district court; UUAA arbitration compelled for UPUAA claims, with Westgate and CPG each selecting one arbitrator and a neutral third (Paul S. Felt) appointed.
  • The arbitration panel found Westgate violated the UPUAA and awarded CPG $65,500.
  • Before arbitration, the panel asked parties to sign an Arbitration Fee Agreement stating the arbitrators deemed themselves neutral.
  • After the award, Westgate moved to vacate on grounds of nondisclosure; the district court vacated and directed a rehearing; CPG sought interlocutory review.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Whether the district court order is appealable as of right or interlocutory CPG: order appealable as of right under UUAA §129(1) Westgate: order not a final appealable order; requires interlocutory review Not a final order under §129; interlocutory appeal proper under Rule 5
Whether UUAA supports vacatur for undisclosed cousin relationship Westgate argues disclosure failure justifies vacatur under UUAA §113(4) read with §124(1)(b) CPG contends nondisclosure could trigger vacatur under §118(4) and related provisions No grounds for vacatur; subsections §124(1)(b) not satisfied; vacatur reversed

Key Cases Cited

  • Hicks v. UBS Financial Services, Inc., 2010 UT App 26 (Utah App. 2010) (order denying confirmation and vacating with rehearing not final; appellate path discussed)
  • Karcher Firestopping v. Meadow Valley Contractors, Inc., 125 Nev. 111, 204 P.3d 1262 (Nev. 2009) (majority view: such orders not appealable; need finality)
  • DeVore v. IHC Hosps., Inc., 884 P.2d 1246 (Utah 1994) (prejudice standard for vacatur; strong emphasis on evidence of partiality)
Read the full case

Case Details

Case Name: Westgate Resorts, Ltd. v. Adel
Court Name: Utah Supreme Court
Date Published: Sep 7, 2012
Citation: 289 P.3d 420
Docket Number: No. 20101017
Court Abbreviation: Utah