A Canadian appeals court has revived U.S.-based Vento Motorcycle’s $2.7 billion Mexico suit, ruling Tuesday that a lower court judge wrongly upheld an arbitral award despite finding that one of the arbitrators may have been biased.
The Court of Appeal for Ontario determined that Judge Marie-Andrée Vermette of the Superior Court of Justice of Ontario erred when she declined to set aside an arbitration ruling that dismissed Vento’s claim. Judge Vermette had acknowledged that arbitrator Hugo Perezcano engaged in undisclosed communications with Mexican government officials during arbitration, raising concerns about his impartiality. However, she concluded that the other two arbitrators remained unaffected, as they had unanimously rejected Vento’s claim.
That reasoning was incorrect, the appeals court ruled, emphasizing that once a reasonable apprehension of bias is established, the arbitrator is disqualified, and any decision they participated in is void.
Bias Cannot Be Overlooked, Appeals Court Says
The appellate panel underscored that fairness in adjudication is paramount, noting that an arbitration ruling cannot stand when there is credible evidence of bias.
