In an arbitration dispute involving the Panama Canal Authority and contractor Grupo Unidos por el Canal, S.A. (GUPC), the Eleventh Circuit federal court decided to uphold an arbitral award last month even though the arbitrators’ failed to disclose certain potential sources of bias. This litigation stems from the issues that arose during the construction of the Panama Canal expansion. According to the contractors, these issues ‘severely delayed and disrupted’ the project’s progress.
The Panama Canal Authority, a government agency, is responsible for operating and managing the Panama Canal, while GUPC was the contractor appointed for the expansion project. The relationship between these two entities became turbulent after complications with the expansion project ensued.
Even though it was revealed that the arbitrators involved in this dispute did not disclose all potential sources of bias, the Eleventh Circuit still maintained the award. This ruling paints an intriguing precedent for future legal considerations, and could affect the way arbitrators and potential biases are handled in such proceedings going forward.
For more in-depth information about this case, you can read the full details here.