Arbitrator’s Undisclosed Relationships Sink Oil and Gas Awards

An arbitrator’s failure to disclose his longstanding business relationships with one of the parties requires setting aside the arbitration awards, the U.S. District Court for the Southern District of Texas said Dec. 5.

Patrick Long, part of a three-member arbitration team, heard a contractual dispute over joint oil and gas operations between OOGC America LLC and Chesapeake Exploration LLC. But when Long “claimed that he did not have professional or social connections with the parties or witnesses, he lied,” the court said.

In reality, Long was a long-time business partner of Yong Siang Goh, the board chairman of FTS ...