On motion to vacate an arbitration award, a Michigan federal court held that the award lacked fundamental fairness and remanded to the same arbitrator with instructions to allow Plaintiffs their “opportunity to present pertinent and material evidence.”

The parties had agreed to submit to the arbitrator the threshold issue of whether a certain indemnity agreement was enforceable. However, the arbitrator did not address Plaintiffs’ alternative claims that if the indemnity agreements were unenforceable: (1) Plaintiffs were fraudulently induced to enter into an agreement Defendant believed to be void; and, (2) Defendant should be estopped from denying its indemnification obligations, as Plaintiffs relied to their detriment on Defendant’s indemnification promises.

For additional background and appellate history, see our prior post here.

Bernard J. Schafer, et al. v. Multiband Corp., No. 12-cv-13152 (USDC E.D. Mich. April 27, 2016).