9.2Arbitration Procedures Under Court Rule
MCR 3.602 applies to all forms of arbitration not governed by the Uniform Arbitration Act (UAA). Specifically, MCR 3.602(A) provides:
“Courts shall have all powers described in [the UAA], or reasonably related thereto, for arbitrations governed by that statute. The remainder of this rule applies to all other forms of arbitration, in the absence of contradictory provisions in the arbitration agreement or limitations imposed by statute, including MCL 691.1683(2).”1
B.Requesting Order Under Court Rule
“A request for an order to compel or to stay arbitration or for another order under this rule must be by motion, which shall be heard in the manner and on the notice provided by these rules for motions. If there is not a pending action between the parties, the party seeking the requested relief must first file a complaint as in other civil actions.” MCR 3.602(B)(1).
C.Compelling or Staying Arbitration
The court may compel the parties to participate in arbitration “and to take other steps necessary to carry out the arbitration agreement” upon a motion “showing an agreement to arbitrate and the opposing party’s refusal to arbitrate[.]” MCR 3.602(B)(2). Further, “[a] motion to compel arbitration may not be denied on the ground that the claim sought to be arbitrated lacks merit or is not filed in good faith, or because fault or grounds for the claim have not been shown.” MCR 3.602(B)(4).
If the opposing party denies that an arbitration agreement exists, the court must “summarily determine the issues and may order arbitration or deny the motion.” MCR 3.602(B)(2). Similarly, “the court may stay an arbitration proceeding commenced or threatened on a showing that there is no agreement to arbitrate.” MCR 3.602(B)(3). “If there is a substantial and good-faith dispute, the court shall summarily try the issue and may enter a stay or direct the parties to proceed to arbitration.” Id.
“Subject to MCR 3.310(E), an action or proceeding involving an issue subject to arbitration must be stayed if an order for arbitration or motion for such an order has been made under [MCR 3.602]. If the issue subject to arbitration is severable, the stay may be limited to that issue. If a motion for an order compelling arbitration is made in the action or proceeding in which the issue is raised, an order for arbitration must include a stay.” MCR 3.602(C).2
The procedures related to arbitration hearings discussed in MCR 3.602(D)-(E) and MCR 3.602(G)-(H) are outside the scope of this benchbook.
“The court may enforce a subpoena or discovery-related order for the attendance of a witness in this state and for the production of records and other evidence issued by an arbitrator in connection with an arbitration proceeding in another state on conditions determined by the court so as to make the arbitration proceeding fair, expeditious, and cost effective.” MCR 3.602(F)(1).
“A subpoena or discovery-related order issued by an arbitrator in another state shall be served in the manner provided by law for service of subpoenas in a civil action in this state and, on motion to the court by a party to the arbitration proceeding or the arbitrator, enforced in the manner provided by law for enforcement of subpoenas in a civil action in this state.” MCR 3.602(F)(2).3
An arbitration panel conducts a hearing and issues an award pursuant to MCR 3.602(H). “A party may move for confirmation of an arbitration award within one year after the award was rendered. The court may confirm the award, unless it is vacated, corrected, or modified, or a decision is postponed, as provided in [MCR 3.602].” MCR 3.602(I).
1.Vacating Award
“A request for an order to vacate an arbitration award under this rule must be made by motion. If there is not a pending action between the parties, the party seeking the requested relief must first file a complaint as in other civil actions. A complaint or motion to vacate an arbitration award must be filed no later than 21 days after the date of the arbitration award.” MCR 3.602(J)(1).
“On motion of a party, the court shall vacate an award if:
(a) the award was procured by corruption, fraud, or other undue means;
(b) there was evident partiality by an arbitrator appointed as a neutral, corruption of an arbitrator, or misconduct prejudicing a party’s rights;
(c) the arbitrator exceeded his or her powers; or
(d) the arbitrator refused to postpone the hearing on a showing of sufficient cause, refused to hear evidence material to the controversy, or otherwise conducted the hearing to prejudice substantially a party’s rights.
The fact that the relief could not or would not be granted by a court of law or equity is not ground for vacating or refusing to confirm the award.” MCR 3.602(J)(2).
“A motion to vacate an award must be filed within 91 days after the date of the award. However, if the motion is predicated on corruption, fraud, or other undue means, it must be filed within 21 days after the grounds are known or should have been known. A motion to vacate an award in a domestic relations case must be filed within 21 days after the date of the award.” MCR 3.602(J)(3).
“In vacating the award, the court may order a rehearing before a new arbitrator chosen as provided in the agreement, or, if there is no such provision, by the court. If the award is vacated on grounds stated in [MCR 3.602(J)(2)(c)-(d)], the court may order a rehearing before the arbitrator who made the award. The time within which the agreement requires the award to be made is applicable to the rehearing and commences from the date of the order.” MCR 3.602(J)(4).
“If the motion to vacate is denied and there is no motion to modify or correct the award pending, the court shall confirm the award.” MCR 3.602(J)(5).
2.Modifying or Correcting Award
“A request for an order to modify or correct an arbitration award under this rule must be made by motion. If there is not a pending action between the parties, the party seeking the requested relief must first file a complaint as in other civil actions. A complaint to correct or modify an arbitration award must be filed no later than 21 days after the date of the arbitration award.” MCR 3.602(K)(1).
“On motion made within 91 days after the date of the award, the court shall modify or correct the award if:
(a) there is an evident miscalculation of figures or an evident mistake in the description of a person, a thing, or property referred to in the award;
(b) the arbitrator has awarded on a matter not submitted to the arbitrator, and the award may be corrected without affecting the merits of the decision on the issues submitted; or
(c) the award is imperfect in a matter of form, not affecting the merits of the controversy.” MCR 3.602(K)(2).
“If the motion is granted, the court shall modify and correct the award to effect its intent and shall confirm the award as modified and corrected. Otherwise, the court shall confirm the award as made.” MCR 3.602(K)(3).
“A motion to modify or correct an award may be joined in the alternative with a motion to vacate the award.” MCR 3.602(K)(4).
The Michigan Court of Appeals will “carefully evaluate claims of arbitrator error to ensure that they are not being used as a ruse to induce [it] to review the merits of the arbitrator’s decision.” Nordlund & Assoc, Inc v Hesperia, 288 Mich App 222, 230 (2010). In Nordlund, the plaintiff’s allegation “that the calculation was faulty because the arbitrator failed to grasp the clear and concise meaning of the contract” actually implicated the arbitrator’s interpretation of the underlying contract between the plaintiff and the defendant, not any mathematical calculations. Id. Because the plaintiff’s allegation did not implicate a mathematical calculation, the only other option under MCR 3.602(K)(2)(a) for modification or correction of the award would have been based on “an evident mistake in a description[.]” Nordlund, 288 Mich App at 229-230. Because there was no evident mistake, “the circuit court properly refused to modify the arbitration award on that basis.” Id. at 230.
3.Judgment
“The court shall render judgment giving effect to the award as corrected, confirmed, or modified. The judgment has the same force and effect, and may be enforced in the same manner, as other judgments.” MCR 3.602(L).
4.Costs
“The costs of the proceedings may be taxed as in civil actions, and, if provision for the fees and expenses of the arbitrator has not been made in the award, the court may allow compensation for the arbitrator’s services as it deems just. The arbitrator’s compensation is a taxable cost in the action.” MCR 3.602(M).4
5.Appeals
“Appeals may be taken as from orders or judgments in other civil actions.” MCR 3.602(N).
1 MCL 691.1683(2) provides that the UAA “does not apply to an arbitration between members of a voluntary membership organization if arbitration is required and administered by the organization. However, a party to such an arbitration may request a court to enter an order confirming an arbitration award and the court may confirm the award or vacate the award for a reason contained in [MCL 691.1703(1)(a), MCL 691.1703(1)(b), or MCL 691.1703(1)(d)].”
2 Because MCR 3.602(C) requires a stay in an action involving an issue subject to arbitration if an order for arbitration or a motion for such an order has been made, the trial court erred when it summarily dismissed a lien foreclosure claim even though it correctly enforced the arbitration agreement. Legacy Custom Builders v Rogers, 345 Mich App 514, 526 (2023).
3 See Section 5.3(C) for information on subpoenas and Section 5.6 for information on foreign subpoenas.
4 See Section 8.5 for information on costs.