Murray D Wikol v. Select Commercial Assets LLC

CourtMichigan Court of Appeals
DecidedSeptember 15, 2022
Docket355393
StatusUnpublished

This text of Murray D Wikol v. Select Commercial Assets LLC (Murray D Wikol v. Select Commercial Assets LLC) is published on Counsel Stack Legal Research, covering Michigan Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Murray D Wikol v. Select Commercial Assets LLC, (Mich. Ct. App. 2022).

Opinion

If this opinion indicates that it is “FOR PUBLICATION,” it is subject to revision until final publication in the Michigan Appeals Reports.

STATE OF MICHIGAN

COURT OF APPEALS

MURRAY D. WIKOL, UNPUBLISHED September 15, 2022 Plaintiff-Appellant,

v No. 355393 Oakland Circuit Court SELECT COMMERCIAL ASSETS, LLC, SIS LC No. 2020-183193-CB HOLDINGS, LLC, DR. SAMIR AL-HADIDI, H. GAYAR FAMILY, LLC, and DR. HESHAM GAYAR,

Defendants-Appellees.

Before: SWARTZLE, P.J., and CAMERON and PATEL, JJ.

PER CURIAM.

Plaintiff Murray D. Wikol appeals the trial court’s order denying his motion to vacate or modify an arbitrator’s decision to dismiss plaintiff’s arbitration claims against defendants Select Commercial Assets, LLC (SCA), SIS Holdings, LLC (SIS), Dr. Samir Al-Hadidi, H. Gayar Family, LLC (HGF), and Dr. Hesham Gayar, on the basis of collateral estoppel and res judicata. We affirm.

I. BACKGROUND

This case arises out of a dispute involving the management of SCA and the distribution of its assets. SCA is a real estate company specializing in purchasing, managing, and developing distressed real property. Plaintiff is a minority member of SCA and is on its Board of Managers. HGF and SIS are limited-liability companies, owned by Drs. Gayar and Al-Hadidi, respectively. HGF and SIS are the majority members of SCA and Dr. Gayar and Dr. Al-Hadidi are on SCA’s Board of Managers. James Porritt was a minority member of SCA who initiated a separate arbitration proceeding (the Porritt arbitration) and obtained an order that divested him of the company and included a buy-out totaling $800,000. Plaintiff and defendants were respondents to the Porritt arbitration. Shortly before the hearing to resolve the issues in the Porritt arbitration, plaintiff filed a crossclaim alleging acts of minority oppression by defendants. The arbitrator

-1- dismissed this claim without prejudice, concluding it was prejudicial to defendants to force them to defend a claim for which there was little time for discovery.

Later, in November 2018, plaintiff initiated this arbitration proceeding alleging that defendants had engaged in shareholder oppression, wrongful withholding of distributions, and various other acts of misconduct contrary to plaintiff’s interests (the “November 2018 demand for arbitration”). Defendants moved to dismiss plaintiff’s case under the doctrines of res judicata and collateral estoppel because plaintiff’s claims had already been decided in the related Porritt arbitration, to which plaintiff was a party. The arbitrator granted defendants’ motion to dismiss, but permitted plaintiff to file an amended arbitration demand and statement of claim to assert facts or claims that were not part of the Porritt arbitration.

In June 2019, plaintiff filed an amended demand for arbitration and statement of claim that restated the same claims previously dismissed by the arbitrator, but also added three new claims against defendants (the “June 2019 amended demand for arbitration”). Defendants again moved to dismiss plaintiff’s case because plaintiff had raised the same claims already resolved in the Porritt arbitration. However, defendants acknowledged Paragraphs 89 and 90 of plaintiff’s June 2019 amended demand for arbitration also alleged some new facts.

Around this time, plaintiff filed, without the arbitrator’s knowledge, three related cases (collectively, “the Oakland Circuit Court cases”) which also asserted claims against defendants. Two of the Oakland Circuit Court cases involved claims by plaintiff’s companies, ProVisions, LLC (ProVisions), and Wimbleton Management and Services, LLC (Wimbleton). In the third case, plaintiff filed suit in his individual capacity against Alga Properties, LLC (Alga), a company owned by Dr. Al-Hadidi and Dr. Gayar.

The arbitrator in this case ultimately granted defendants’ motion to dismiss plaintiff’s June 2019 amended demand for arbitration with prejudice. The arbitrator granted the motion to dismiss, in part, because some of plaintiff’s claims were “identical claims to those filed and ruled upon in the Porritt [arbitration]” and “they cannot be re-litigated in this proceeding under the doctrines of collateral estoppel and res judicata.” In terms of plaintiff’s claims in Paragraphs 89 and 90, which involved Alga, ProVisions, and Wimbleton, the arbitrator concluded these same claims were resolved in the Oakland Circuit Court cases. Therefore, these claims were “extinguished” and could not be relitigated in arbitration.

Plaintiff later filed a complaint in the trial court, and moved to vacate or modify the arbitration award. Plaintiff argued that under MCR 3.602(J) and MCL 691.1703(1)(c), the arbitrator refused to hear material evidence and conducted the arbitration in a manner that substantially prejudiced plaintiff’s rights. Specifically, plaintiff alleged that the arbitrator did not allow him to present evidence of his damages. Plaintiff further alleged that the arbitrator misapplied the principles of res judicata and collateral estoppel in dismissing plaintiff’s claims, which substantially prejudiced plaintiff’s right to a hearing and due process. After a hearing, the trial court denied plaintiff’s motion. This appeal followed.

-2- II. DISMISSAL OF THE ARBITRATION

Plaintiff raises several challenges to the arbitrator’s decision to dismiss the arbitration, and argues that the trial court erred by denying his motion to vacate or modify the arbitration award. This argument can be separated into two general parts. Plaintiff first challenges the arbitrator’s conclusion the allegations in Paragraphs 89 and 90 of the June 2019 amended demand for arbitration were barred on the basis of res judicata and collateral estoppel. Second, plaintiff disputes the arbitrator’s determination the remaining allegations were also barred by res judicata and collateral estoppel. We disagree.

A. STANDARD OF REVIEW

“This Court reviews de novo a trial court’s ruling on a motion to vacate or modify an arbitration award.” Washington v Washington, 283 Mich App 667, 671; 770 NW2d 908 (2009). “This means that we review the legal issues presented without extending any deference to the trial court.” Id. “Whether an arbitrator exceeded [their] authority is also reviewed de novo.” Id. at 672.

To the extent that plaintiff alleges a violation of his right to due process, whether a party has been afforded due process is a question of law subject to de novo review. AFP Specialties, Inc v Vereyken, 303 Mich App 497, 504; 844 NW2d 470 (2014). The application of collateral estoppel and res judicata are also questions of law that this Court reviews de novo. Dep’t of Environmental Quality v Sancrant, 337 Mich App 696, 707; 976 NW2d 874 (2021).

B. GOVERNING LAW

Courts have limited review over an arbitrator’s decision. TSP Servs, Inc v Nat’l-Std, LLC, 329 Mich App 615, 619; 944 NW2d 148 (2019). “A court may not review an arbitrator’s factual findings or decision on the merits.” Id. at 620 (quotation marks and citation omitted). Rather, a court may only reverse an arbitrator’s decision where the arbitrator made an error law. Id.

MCL 691.1703, which articulates when a court must vacate an arbitration award, states in pertinent part:

(1) On motion to the court by a party to an arbitration proceeding, the court shall vacate an award made in the arbitration proceeding if any of the following apply:

* * *

(c) An arbitrator refused to postpone the hearing upon showing of sufficient cause for postponement, refused to consider evidence material to the controversy, or otherwise conducted the hearing contrary to [MCL 691.1695], so as to prejudice substantially the rights of a party to the arbitration proceeding.

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Murray D Wikol v. Select Commercial Assets LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/murray-d-wikol-v-select-commercial-assets-llc-michctapp-2022.