In a somewhat curious decision, the California Court of Appeal, Fourth
Appellate District, ruled that a JAMS arbitrator's religious beliefs and cultural
affiliations and background were not relevant and did not need to be disclosed in
accordance with the California Arbitration Act.
The instant decision occurred in the matter Herbert Rebmann v. Peter
Rohde, 2011 DJDAR 9676 ("Rebmann Case"). In the Rebmann Case, a
commercial litigation matter involving an operating agreement for a joint
venture which was formed to distribute nutritional supplements in North
America, claimant Peter Rohde and an entity Rhode controlled ("Rhode Parties")
initiated arbitration proceedings seeking to hold Herbert Rebmann and an entity
Rebmann controlled ("Rebmann Parties") liable for substantial monetary
damages, arguing that the Rebmann Parties induced the Rohde Parties into the
joint venture by intentionally and recklessly misrepresenting various material
facts.
The arbitration was conducted before the Judicial Arbitration Mediation
Services ("JAMS"). When the parties could not agree on a mediator, JAMS
selected Stephen E. Haberfeld, a respected retired federal magistrate. JAMS
provided a ten page arbitration disclosure checklist covering a lengthy list of
items under the Code of Civil Procedure and the California Rules of Ethics
Standards. The document also required Judge Haberfeld to declare that he had
made a "reasonable effort to inform [him]self of any matters that could cause a
person aware of the facts to reasonably entertain a doubt that as the proposed
arbitrator [he] would be able to be impartial".
The subject dispute was arbitrated over a period of 33 months, concluding
with a seven day session in January 2009. In the arbitrator's lengthy decision, the
arbitrator concluded that the Rohde Parties had failed "to sustain [their] burden
of proof" on any of their claims and ruled in favor of the Rebmann Parties on
their counterclaims, but only awarded nominal damages of $1,000.00. However,
Judge Haberfeld found that the Rebmann Parties were the "prevailing party"