Midmark Corporation v. Towe & Associates, Inc.

Headnotes

H1: Civil Procedure > Alternative Dispute Resolution > Arbitration > General Overview

Government > Courts > Authority to Adjudicate

Under O.R.C §2711.10, a trial court has limited power to vacate an arbitration award, because the arbitration awards are presumed valid and binding. However, a trial court may vacate an arbitration award if an arbitrator acts outside his or her powers. If an award is arbitrary, capricious, or unlawful, the trial court may vacate the agreement. Arbitration awards must be awarded based on a rational nexus between the agreement and the award. 

 

Summary of Case

Procedural Posture: Defendant has filed a motion to compel arbitration, as per the voluntary agreement between Plaintiff and Defendant, and Plaintiff has filed objections.  

Overview: The parties involved entered into a contract where arbitration was the method of dispute resolution. The Court, in examining the pleadings of both parties, determined that several provisions of this contract were vague and would require that the court’s jurisdiction be invoked to determine what the vague provisions mean. The Court found this contrary to the purpose of the arbitration agreement. 

Outcome: The Court denied the Defendant’s motion to compel arbitration. The Court also ruled that it will revisit the issue once the ambiguities in the agreement are resolved. 

Click .pdf to read the full opinion