Judicial review of an arbitrator’s decision; Motion to vacate an arbitration award; MCL 691.1703; Whether an arbitrator exceeded his or her power; Saveski v Tiseo Architects, Inc; Res judicata; Collateral estoppel; Principle that a dismissal without prejudice is not an adjudication on the merits; Yeo v State Farm Fire & Cas Ins Co

The court held that the trial court did not err by denying plaintiff’s motion to vacate or modify an arbitrator’s decision to dismiss his arbitration claims against defendants based on collateral estoppel and res judicata. Plaintiff initiated arbitration proceedings claiming they engaged in shareholder oppression, wrongful withholding of distributions, and various other acts of misconduct contrary to his interests. Defendants moved to dismiss based on res judicata and collateral estoppel because his claims had already been decided in a related arbitration, to which he was a party. The arbitrator granted defendants’ motion but permitted plaintiff to file an amended arbitration demand and statement of claim to assert facts or claims that were not part of the related arbitration. The arbitrator then granted the motion to dismiss the amended demand, in part, because some of plaintiff’s claims were “identical claims to those filed and ruled upon in the” related arbitration. Plaintiff then sued in the trial court and unsuccessfully moved to vacate or modify the arbitration award. The court rejected his argument that the trial court erred by denying his motion to vacate or modify the arbitration award. Although plaintiff asserted he was entitled to damages similar to those awarded to another individual in the related arbitration, he offered no evidence showing the arbitrator would have made such an award. Moreover, even if the court were to compare the two cases, it was unlikely plaintiff would receive an award similar to the related arbitration because the purpose of that “award was to break the voting deadlock that existed between” defendant-company’s majority and minority members. After the interest at issue in the related arbitration was bought out, the deadlock no longer existed. As such, reversal was not necessary because the court could not conclude that, but for an “error, a different award would have been made.” It also rejected plaintiff’s claim that the arbitrator wrongly dismissed his remaining arbitration allegations, noting there was “nothing on the face of the award or clear evidence demonstrating that the arbitrator made an error of law that warrants reversal.” Finally, the court rejected his contention the trial court erred by refusing to vacate the arbitration award because the arbitrator did not consider material evidence in rendering its decision, noting it was “not persuaded that the arbitrator erred by concluding that res judicata applied to plaintiff’s like claim in the instant arbitration, and thus did not err by refusing to consider material evidence in contravention of MCL 691.1703(c).” Affirmed.