Litigation Coverage: UnitedHealthcare Asks Texas State Court to Vacate $153M Radiology Partners Arbitration Award After Panel Bias Ruling

Relevant Document: Application to Vacate UnitedHealthcare on Dec. 26 asked a Harris County, Texas, state court to vacate a $153 million interim arbitration award in a contract dispute with Radiology Partners affiliate Singleton Associates, arguing that the arbitration panel is considering whether to vacate the interim award and that it would be premature for the court to “wade into” the dispute. United argues in its application to vacate that the Texas state court can only confirm final awards and that the award is not final because the arbitration panel is considering whether to vacate the interim award because of partiality of the members of the arbitration panel. Three of the arbitrators, including the chair of the panel, were disqualified because of their “evident partiality,” the insurer says, “based on overwhelming evidence of bias on issues directly relevant to the arbitration and the Interim Award.” After the chair’s disqualification and removal by the American Arbitration Association, a new chair was appointed, according to United. On Dec. 22, the new panel granted United’s request for rehearing in part, indicating that it would reconsider the outcome of phases 1 and 2 of the arbitration “based on the written record,” the application notes. The[...]