publications_unodc_commentary-e

2.5.3 The judge, or a member of the judge's family, has aneconomic interest in the outcome of the matter incontroversy;CommentaryWhen economic interest disqualifies the judge98. The judge must ordinarily recuse himself or herself from any case in whichthe judge (or a member of the judge’s family) is in a position to gain or losefinancially from its resolution. This may occur, for example, if the judge has asubstantial shareholding in one of the parties and the outcome of the case might besuch as could realistically affect the judge’s interest or reasonably appear to do so.If a publicly listed company is a party and the judge holds a relatively small amountof its total shares, the judge may not be disqualified since the outcome of the casewould usually not affect the judge’s interest. It may, however, be different if thelitigation involves the viability and survival of the company itself in which case,depending on the circumstances, the outcome may be regarded as realisticallyaffecting the judge’s interest.What does not constitute “economic interest”99. An economic interest does not extend to any holdings or interests that ajudge might have, for example, in mutual or common investment funds, deposits ajudge might maintain in financial institutions, mutual savings associations or creditunions, or government securities owned by a judge, unless the proceeding couldsubstantially affect the value of such holdings or interests. Disqualification is alsonot required if a judge is merely a customer dealing in the ordinary course ofbusiness with a bank, insurance company, credit card company, or the like that is aparty in a case, without there being pending any dispute or special transactioninvolving the judge. The fact that securities might be held by an educational,charitable, or civic organization in whose service a judge’s spouse, parent or childmay serve as a director, officer, advisor or other participant does not, depending onthe circumstances, mean that a judge has an economic interest in such anorganization. Similarly, in cases involving financial implications that are highlycontingent and remote at the time of the decision, one would expect the applicationof the test generally not to result in disqualification. Nevertheless, in such cases itmay be prudent for the judge to notify the parties of any such circumstances andhave the matter recorded in open court so that the parties and not just the lawyers aremade aware of them. Sometimes, lay clients are more suspicious and less trustingthan the judge’s professional colleagues.76