Rebmann v. Rohde

Herbert Rebmann and his company (collectively, Rebmanns) (plaintiffs) and Peter Rohde and his company (collectively, Rohdes) (defendants) formed an entity to distribute nutritional supplements in North America. Both Rebmann and Rohde were German. A business dispute developed, and Rohdes initiated arbitration proceedings. The Judicial Arbitration and Mediation Service, Inc. (JAMS) selected retired magistrate judge Stephen Haberfeld as the arbitrator. JAMS provided an arbitrator-disclosure checklist and Haberfeld’s declaration that he had made a reasonable effort to inform himself of any matters that could cause doubt as to his ability to be impartial. Haberfeld found in favor of Rebmanns and awarded nominal damages and substantial attorney fees and costs. Rebmanns filed a petition to confirm the award. Rohdes filed a counterpetition to vacate the award, arguing that Haberfeld had failed to disclose facts about his religion and family background. Rohdes asserted that an Internet search had revealed that Haberfeld’s parents were German Jews who had lost family and property in the Holocaust and Haberfeld and his parents belonged to a Holocaust-survivor organization. Rohdes filed declarations stating that Rohde and his wife were born in Germany, Rohde’s father had served in the German army, Rohde’s wife’s father had served in the Schutzstaffel, Rohde would not have allowed Haberfeld to be the arbitrator had Rohde known about Haberfeld’s religious and cultural affiliations, and Haberfeld intended to punish Rohde for the harms to his family. Haberfeld maintained that he had been neutral and unbiased during the arbitration; he knew nothing about any party, witness, or family member’s involvement in the Holocaust or World War II; the arbitration was unrelated to those matters; and the Internet search would have produced the same results before the arbitration commenced. The court granted Rebmanns’ petition to confirm the award. Rohdes appealed.