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BUSINESS LAW 7: Defendant filed a demand for arbitration in the circuit court.

On August 21, 2012, plaintiff and defendant entered into an agreement for the construction of a commercial building. The contract contained an arbitration agreement. According to defendant, the contract work was substantially completed on April 7, 2014, when the city issued a Temporary Certificate of Occupancy, and the balance of the contract became due. Defendant subsequently recorded a Claim of Lien against the commercial property and initiated a circuit court action against plaintiff for the balance owed. That action was dismissed on plaintiff’s motion for summary disposition based on the arbitration clause.

Defendant then filed a demand for arbitration in the circuit court. At arbitration, plaintiff presented a counter claim and alleged that defendant had abandoned the contract, leaving significant portions of the commercial building uncompleted, and further, refused to return to complete the work or perform corrective work. Each party hired experts to generate reports listing the costs to perform repairs and complete the work on the building. Moreover, the arbitrator enlisted contractors to inspect roofing and HVAC work and provide bids to do the work.

On December 1, 2016, the arbitrator issued an arbitration award in favor of plaintiff in the amount of $358,830, plus an additional $3,750 in arbitration fees. Plaintiff filed a complaint in the circuit court, and subsequently moved for confirmation of the arbitration award and a judgment for the amount awarded. Defendant responded with a motion to vacate the arbitration award on the basis that the arbitrator had exceeded her powers. The trial court denied defendant’s motion and granted plaintiff’s motion, entering a judgment on plaintiff’s behalf. Defendant then filed a motion for reconsideration, which the trial court also denied.

If you are a business owner facing litigation, obtaining the right legal representation is essential.

At Aldrich Legal Services, you will work with an attorney who has the extensive litigation experience necessary to help you reach an effective resolution that protects your interests.

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