Opinion ID: 2975341
Heading Depth: 3
Heading Rank: 1

Heading: Failure to apply Michigan law

Text: Plaintiff contends that the “arbitral authority was not in accordance with the agreement of the parties” because the arbitrator failed to apply Michigan law. This defense is simply a guise to invite us to reconsider the merits of this case. The arbitrator did not rule in Defendant’s favor because it failed to apply well-established Michigan law that time periods to exercise options are enforceable. It did so because it held that Plaintiff had not upheld its responsibility under the Agreement to provide written notice of the Event of Default. Thus, the time period had not been triggered. This does not go to the choice of law; it goes to the merits of the case. Plaintiff attempts to argue that the arbitrator found that it had provided written notice to Defendant in an April 20, 2004 email. However, that is not quite true. In fact, the arbitrator found that Plaintiff responded to an email from Defendant denying that the bankruptcy of affiliates were “tied” to Plaintiff. (J.A. at 41). This email was not considered adequate written notice and should not be; it did not set forth the essential point that Plaintiff was involved in an Event of Default. Thus, the issue Plaintiff attempts to have us consider is not a claim of procedural aberration because the arbitrator failed to apply the correct law. It is a claim that the arbitrator incorrectly held that there was no written notice and that we should substitute our judgment for that of the arbitrator. This is not a cognizable defense under the Convention; thus, we will not overturn the enforcement of the Award on this ground.