I believe there is a shot (I like other theories in the petition a bit more as I found exactly 1 case in the Second Circuit vacating an award on this theory - but the facts have some similarities).
From a 1991 District Court decision in SDNY applying this standard:
"Although there may not have been actual bias in the award rendered by the panel, Morelite does not require that a challenging party prove actual bias in order to show “evident partiality.” Rather, as discussed above, a challenging party must show only that “a reasonable person would have to conclude that an arbitrator was partial to one party to the arbitration.” 748 F.2d at 84.
Because Proeller's business relationship with Sun involved an extensive personal involvement in an ongoing arbitration between Sun and the company which employed him as their New York Agent, Proeller should have acceded to Sun's timely request that he step down as an arbitrator. In most cases, a party seeking to vacate an award alleges that the arbitrator's relationship with an opposing party in the arbitration has made that arbitrator partial in favor of that opposing party. This case is somewhat different, because Sun alleges that Proeller's relationship with respect to their own company has made him partial against Sun. Nevertheless, this is a distinction without a difference. Sun had a right to an arbitrator neither evidently partial in favor of the other side nor evidently partial against Sun.
Based on the nature of his business relationship with Sun, and his behavior in connection with the fee, a reasonable person would have to conclude that Proeller was partial to Statheros, or at least against Sun, in the Sun–Statheros arbitration. Morelite, 748 F.2d at 83. Proeller was President of the New York agent for Fritzen Group and was personally and extensively involved in the arbitration between Sun and Fritzen Group—as demonstrated by the letter he wrote to Sun with respect to Fritzen Group's damage claim. Although Proeller may not have had a direct financial interest in either the arbitration or the underlying contract between Sun and Fritzen Group, at the least his status as Fritzen Group's New York agent could only be enhanced to the extent Fritzen Group succeeded in its arbitration against Sun. Sun was not unreasonable in fearing that either the conduct or ultimate outcome, or both, of the arbitration between Sun and Fritzen Group might color Proeller's judgment in the separate arbitration between Sun and Statheros."
A problem may arise on the separate standard of if the parties have contracted for a specific arbitrator, will this court determine it should be 'loathe' to disturb that contractual choice.
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