e-Journal Summary

e-Journal Number : 76931
Opinion Date : 02/01/2022
e-Journal Date : 02/16/2022
Court : Michigan Court of Appeals
Case Name : Zalewski v. Homant
Practice Area(s) : Family Law Alternative Dispute Resolution
Judge(s) : Per Curiam – Cameron, M.J. Kelly, and Shapiro
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Issues:

Divorce; Motion to vacate an arbitration award; MCR 3.602(J); The Domestic Relations Arbitration Act; An arbitrator exceeding his or her powers; MCL 600.5801(2)(c); Washington v Washington; Broad authority under the arbitration agreement to decide “post judgment of divorce issues”; The arbitrator’s authority to divide the parties’ personal property, award an “offset,” award money for repairs, & award attorney fees; The trial court’s authority to award attorney fees; MCR 1.109(E)

Summary

Concluding that the arbitrator did not exceed her authority, the court held that the trial court did not err in denying defendant-ex-husband’s motion to vacate the arbitration award. But it vacated the order awarding plaintiff-ex-wife attorney fees under MCR 1.109(E) because the trial court did not make findings supporting that the motion to vacate the “award was filed ‘for any improper purpose, such as to harass or to cause unnecessary delay or needless increase in the cost of litigation[.]’” Thus, it affirmed the order denying the motion to vacate the arbitration award, vacated the order granting attorney fees, and remanded “for appropriate findings or so that the trial court can reconsider its decision to sanction defendant if” it deems it necessary. He argued that the arbitrator lacked the authority to consider whether he “failed to disclose certain debts relating to the real property that was awarded to plaintiff in the property settlement.” But the arbitration agreement here “broadly granted the arbitrator the authority to decide the ‘post judgment of divorce issues’ that were pending before the trial court, i.e., the issues presented in the parties’ motions to enforce the consent judgment. Plaintiff argued in her motion” that defendant had failed to disclose debt on the real property she was awarded. The arbitrator clearly “indicated that ‘[t]he issues to be addressed [in arbitration] were the issues raised in prior post Judgment motions[.]’” Thus, the court found no merit in defendant’s claim that the arbitrator exceeded her authority by violating the terms of the arbitration agreement. As to personal property, because he raised the issue of the division of household items in his post-judgment motion, the arbitrator had authority to consider it. The same was true as to the award to plaintiff for the cost of repairs she made to marital home’s HVAC unit, which she requested in her post-judgment motion. As to the arbitrator’s award of attorney fees to plaintiff, the “arbitration agreement broadly provided the arbitrator with authority to decide ‘[a]ll issues’ concerning ‘attorney fees.’”

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