26B.01General duty of disclosure

26B.01 General duty of disclosure

(1) Each party to an arbitration has a duty to the arbitrator and each other party to the arbitration to give full and frank disclosure of all information relevant to the arbitration, in a timely manner. (2) Without limiting subrule (1), a party to an arbitration must make full and frank disclosure of the party’s financial circumstances, including the following: (a) the party’s earnings, including income that is paid or assigned to another party, person or legal entity; (b) any vested or contingent interest in property; (c) any vested or contingent interest in property owned by a legal entity that is fully or partially owned or controlled by a party; (d) any income earned by a legal entity fully or partially owned or controlled by a party, including income that is paid or assigned to any other party, person or legal entity; (e) the party’s other financial resources; (f) any trust: (i) of which the party is the appointor or trustee; or (ii) of which the party, or the party’s child, spouse or de facto spouse, is an eligible beneficiary as to capital or income; or (iii) of which a corporation is an eligible beneficiary as to capital or income if the party, or the party’s child, spouse or de facto spouse, is a shareholder or director of the corporation; or (iv) over which the party has any direct or indirect power or control; or (v) of which the party has the direct or indirect power to remove or appoint a trustee; or (vi) of which the party has the power (whether subject to the concurrence of another person or not) to amend the terms; or (vii) of which the party has the power to disapprove a proposed amendment of the terms or the appointment or removal of a trustee; or (viii) over which a corporation has a power mentioned in any of subparagraphs (iv) to (vii), if the party, or the party’s child, spouse or de facto spouse, is a director or shareholder of the corporation; (g) any disposal of property (whether by sale, transfer, assignment or gift) made by the party, a legal entity mentioned in paragraph (c), a corporation, or a trust mentioned in paragraph (f), that may affect, defeat or deplete a claim: (i) in the 12 months immediately before the separation of the parties; or (ii) since the final separation of the parties; (h) liabilities and contingent liabilities. (3) Paragraph (2)(g) does not apply to a disposal of property made with the consent or knowledge of the other party or in the ordinary course of business. (4) In this rule:

legal entity means a corporation (other than a public company), trust, partnership, joint venture business or other commercial activity.