Tag Archives: interest

California Appeals Court Establishes Bright-Line Rule for Disclosure of ADR Affiliation

Second District Establishes Bright-Line Rule for Disclosure of ADR Affiliation.

An attorney who joined an ADR firm while representing a party in an arbitration conducted by the same firm needed to disclose to all parties in the arbitration.  Failure to do so resulted in the vacation of a favorable award after a nine-day arbitration hearing.

When evaluating potential conflicts of interest, there may be situations where disclosure is not technically required.  Disclose anyway.  This attorney will face a malpractice claim from a disgruntled client who incurred sizable costs and fees to prepare for and to participate in a lengthy arbitration hearing, will have to incur them again, and may not get the same result the second time around.