Stone v. Bear, Stearns & Co.

Issue: (1) Whether an arbitrator’s failure to disclose facts creating a reasonable impression of partiality warrants vacating an arbitration award pursuant to 9 U.S.C. § 10(a)(2), or whether an arbitration award should stand despite an arbitrator’s failure to disclose conflicts of interest unless a reasonable person would have to conclude that the arbitrator was partial to one party to the arbitration; and (2) whether a party waives a challenge to an arbitrator’s failure to disclose conflicts of interest only if it knows of the conflicts and fails to raise them during the arbitration, or whether a party waives such a challenge unless it fully investigates the arbitrator’s undisclosed conflicts, and objects to the arbitrator’s participation, during the arbitration.