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In United Industrial Engineering Corporation v. Fluty, Nos. 260034, 260035, 2006 WL 2683318 (Mich. App. Sept. 19, 2006), Appellant United Industrial Engineering Corporation (UIE) challenged the lower court’s confirmation of an arbitration award allegedly based on improper calculations. Finding “no clearly apparent error,” the Court of Appeals of Michigan affirmed the arbitral award.
A three-member arbitration panel heard the dispute between UIE and Fluty, which involved the non-payment of yearly installment fees connected to a non-competition agreement. An award was issued in favor of Fluty, but UIE argued that the arbitrators exceeded their powers by awarding money for abandoned claims.
The Court disagreed, and since there was no “clearly apparent” error on the face of the arbitration award, the award was upheld. Saveski v. Tiseo Architects, Inc., 682 N.W.2d 542, 555 (Mich.App. 2004). Provisions of the non-competition and stock acquisition agreements provided for interest on overdue principal and new worth overages, respectively. In adding these potential values to the amount that UIE already owed, the arbitrators’ award was entirely reasonable.
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