Challenge of an arbitrator and its consequences

This article examines the issues regarding the removal of arbitrator and the consequences of arbitrator’s disqualification. Right to a fear trial by independent and impartial tribunal is applicable to arbitration as well. Therefore, this article aims to reveal the contents of the grounds for the challenge of an arbitrator foreseen in Lithuanian Law on Commercial Arbitration as well as to analyse what are the consequences after the arbitrator is removed or the challenge procedure was not successful. In order to examine abovementioned issues, the author analyses practices of foreign countries and compares them to the legal regulation in Lithuania. The author also identifies directly foreseen consequences of the removal of arbitrator and tries to determine indirect consequences of the disqualification such as possible liability of an arbitrator. The article concludes that the Lithuanian case-law, stating that independence and impartiality of an arbitrator should be assessed at the same level as the one of judge’s, cannot be made absolute. Besides, when the arbitrator is removed not only direct but also indirect consequences may arise which may lead to the arbitrator’s liability issues