SAN FRANCISCO — A federal appeals court on Monday reinstated a $5.3 million employment arbitration award against medical-device maker Masimo Corp. in a case where the company made an issue of the arbitrator’s family ties to Cooley chairman Stephen Neal.

Masimo’s appellate team at Knobbe, Martens, Olson & Bear had claimed JAMS neutral Richard Neal, a former justice on the Second District Court of Appeal, was biased because his brother had lost two big-ticket cases against the company.