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A state court in Michigan held that a defendant corporation was adequately notified of an arbitration hearing when the arbitration forum served a demand for arbitration against the defendant's former CEO.
In Perceptron, Inc. v. Photon Vision Systems, Inc., Docket No. 261886, 2007 WL 517119 (Mich. Ct. App. Feb. 20, 2007), defendant Photon Vision Systems, Inc. (Photon) argued for vacatur of an arbitration award, claiming that it was never notified of its status as a named party in the arbitration proceeding. Photon further argued that the award was obtained through fraud or misconduct.
Applying New York law, the Court rejected Photon's challenges to the arbitration award. The designated arbitration provider served a notice of the arbitration on Photon's former CEO, an act sufficient to put the corporation on notice. Fashion Envelopes, Inc. v. Minsky, 72 A.D.2d 698 (N.Y. App. Div. 1979). Moreover, the Court did not find any evidence of fraud or misconduct because nothing supported Photon's claim that plaintiff had failed to disclose material evidence in the arbitration proceeding.
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