Burlington Northern Railroad Company and the Atchison, Topeka & Santa Fe Railway Company, Petitioners v. Tuco Inc…

Summary

The Texas Supreme Court held that a neutral arbitrator selected by the parties must disclose any facts that could create a reasonable impression of partiality, and that the neutral arbitrator’s nondisclosure of a substantial referral during the arbitration constitutes evident partiality, requiring vacatur of the award. The Court also reversed the appellate court and remanded with instructions to vacate the award. Justice ENOCH, dissenting, argued that the majority’s broader “impression” standard is incorrect and would have reversed the judgment without vacating the award.