Westgate Resorts, Ltd. v. Adel
289 P.3d 420
Utah2012Background
- 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)
